Somerset, NJ—08873
Real Estate Data & Market Trends
Key Metrics at a Glance
Home Price Trends — Somerset, NJ
As of Oct '25, the median home price in Somerset, NJ is $560,000, with a year-over-year change of 2.7%. This indicates that home prices in Somerset, NJ are increasing. According to Zillow, the 1-year price projection is 1.2%, suggesting an increase housing market in the next year.
Cost per Home Type
| Home Type | Median Home Value | YoY % Change |
|---|---|---|
All Homes | $560,000 | 2.7% |
| Single Family | $582,000 | 1.9% |
| Condos | $447,000 | 3.5% |
Cost per Home Size
| Home Size | Median Home Value | YoY % Change |
|---|---|---|
1 Bed | N/A | N/A |
2 Bed | $451,000 | 2.7% |
3 Bed | $559,000 | 2.9% |
4 Bed | $676,000 | 3.0% |
| 5 Bed | $817,000 | 3.2% |
% of Housing Stock
Rental Trends — Somerset, NJ
As of July '25, Rentcast reports the average rent in Somerset, NJ is $2,880, with a year-over-year rent change of -2.4%. Per bedroom, the median rent as of July '25 in Somerset, NJ is studios: $2,170, 1-bedrooms: $1,870, 2-bedrooms: $2,680, 3-bedrooms: $3,360, 4-bedrooms: $4,380. The most common rental property sizes in Somerset, NJ are 2-bedroom and 1-bedroom, accounting for 46.5% and 30.8% of the rental stock.
| Type | Median Rent | Average Rent |
|---|---|---|
| Average Rent | $3,000 | $2,880 |
| Studio Rent | $2,260 | $2,170 |
| 1 Bed Rent | $1,900 | $1,870 |
| 2 Bed Rent | $2,780 | $2,680 |
| 3 Bed Rent | $3,200 | $3,360 |
| 4 Bed Rent | $3,500 | $4,380 |
% of Rental Stock
Property Listings — Somerset, NJ
As of Oct '25, Realtor.com reports that the median days on market for a home in Somerset, NJ is 36. This is a increase of 31.0% from last year, suggesting that homes are sitting on the market longer than last year. The percentage of listed homes with a reduced price is 14.0%, representing a small inventory and little supply pressure on home prices.
| Metric | Zip Code Average | Year over Year % Change |
|---|---|---|
Median Listing Price | $568,000 | 14.0% |
Listing Count | 155 | 36.0% |
| Listings as % of Homes | 0.4% | 36.0% |
Days on Market | 36 | 31.0% |
Demographics — Somerset, NJ
As of the latest ACS Survey released in 2023, Somerset, NJ has a population of 55,900, which has increased by 4.1% over the past 5 years. Somerset, NJ is a moderately popular place for families, as children make up 20.5% of the population. The area has a highly educated workforce, with 54.5% of adult residents holding a bachelor’s degree or higher. There are some residents working remotely, with 18.6% reporting working from home.
| Metric | Latest Census | YoY % Change |
|---|---|---|
Population | 55,900 | 4.1% |
% Under 18 | 20.5% | 6.2% |
% Seniors | 19.3% | 7.8% |
% WFH | 18.6% | 304.3% |
% w/ College Degree | 54.5% | 11.0% |
As of the latest ACS Survey released in 2023, Somerset, NJ is a predominantly black area, with 28.8% of the population identifying as black. The black population has shrunk by 5.0% in the last 5 years. The second most common race or ethnicity in Somerset, NJ is white, making up 28.6% of the population. Foreign-born residents account for 32.9% of the population in Somerset, NJ, and this percentage has increased by 17.5% as of the ACS Survey 5 years prior, suggesting more immigrants are calling the area home.
Race and Ethnicity
| Metric | Latest Census | 5-Year % Change |
|---|---|---|
% White | 28.6% | -18.5% |
% Black | 28.8% | -5.0% |
% Hispanic | 19.3% | 27.8% |
% Asian | 20.3% | 8.0% |
% Foreign Born | 32.9% | 17.5% |
Mortgage and Risk — Somerset, NJ
According to HUD data as of 2023, there were 649 mortgage originations in Somerset, NJ, of which 84.0% of loans were conventional mortgages. The average loan-to-value was 62.0%, with 22.0% above 90% LTV (very high). This implies large mortgage risk in Somerset, NJ. Investor activity is low, as 2.0% of loans were by investors. 14.0% of loans were cash-out refinances, suggesting many homeowners are tapping equity.
Mortgages
| Metric | Zip Code Average |
|---|---|
Total Loan Originations | 649 |
% Conventional Loans | 84.0% |
% Government Loans | 16.0% |
% Investor Loans | 2.0% |
% Second Loans | 0.0% |
% Cash Out Refinance | 14.0% |
Loan Activity
Rentals and Section 8 — Somerset, NJ
As of 2024, the percent of homes in Somerset, NJ under the Section 8 program is 6.6%. This is considered low, suggesting that the neighborhood is sparsely composed of Section 8 homes. Section 8 opportunity is good when HUD pays more than market rent. In Somerset, NJ, none of the tracked home sizes currently have HUD payment amounts above market rent, suggesting limited Section 8 opportunity.
Section 8 Market Size
Total Units under HUD | 626 |
Total Units Section 8 | 489 |
% Rentals under Section 8 | 6.6% |
% Occupied Section 8 | 97.4% |
Section 8 Opportunity
| Home Size | HUD Premium | Market Rent | Max HUD Rent |
|---|---|---|---|
| 1 Bedroom | -$90 | $1,900 | $1,810 |
| 2 Bedroom | -$510 | $2,780 | $2,270 |
| 3 Bedroom | -$460 | $3,200 | $2,740 |
| 4 Bedroom | -$490 | $3,500 | $3,010 |
Affordability — Somerset, NJ
Home Price to Income Ratio
| Metric | Zip Code Average |
|---|---|
| Home Price to Income Ratio | 4 |
| Median Home Price | $560,000 |
| Median Household Income | $118,000 |