Home Values in Paterson, New Jersey — 2026 Market Report
Updated March 2026 | Seller's Market | +4.5% YoY
The median home value in Paterson, New Jersey is $385,000 as of March 2026, which is near the national median of $400,000. Home values in Paterson have increased by 4.5% over the past year and 24.6% over the last five years. With a population of 159,732 and a median household income of $35,250, the price-to-income ratio stands at 10.9x, making Paterson affordable for the average household.
Paterson Housing Market Conditions
| Metric | Paterson | National Avg |
|---|---|---|
| Median Home Value | $385,000 | $400,000 |
| YoY Appreciation | +4.5% | +3.8% |
| 5-Year Appreciation | +24.6% | +22.4% |
| Price per Sq Ft | $228 | $222 |
| Days on Market | 59 days | 45 days |
| Months of Supply | 1.9 | 3.5 |
| List-to-Sale Ratio | 98.7% | 98.5% |
| Monthly Homes Sold | 132 | — |
| Foreclosure Rate | 0.18% | 0.3% |
Home Value Trends in Paterson
A homeowner who purchased at the median price of $308,989 five years ago in Paterson would have gained approximately $76,011 in equity, representing a 24.6% return on investment. Over the past year alone, the typical homeowner gained $16,579 in home equity.
Affordability in Paterson, NJ
With a median household income of $35,250 and a median home price of $385,000, the price-to-income ratio in Paterson is 10.9x. A ratio below 3x is generally considered affordable, while above 5x indicates significant affordability challenges. The average monthly rent of $2,878 compared to estimated monthly ownership costs of $2,537 gives a rent-vs-buy ratio of 0.88. In Paterson, buying is currently competitive with renting when factoring in equity accumulation.
Property Taxes in Paterson
The effective property tax rate in New Jersey is 2.21%. On a home valued at $385,000, the estimated annual property tax bill is $8,509, or approximately $709/month. Property taxes are an important factor in the total cost of homeownership and can significantly impact affordability. The cost of living index in Paterson is 118.5 (100 = national average), indicating living costs are above the national average.
Calculate Your Mortgage Payment in Paterson
Use our free calculator to estimate monthly payments for a $385,000 home
Open Mortgage CalculatorFrequently Asked Questions
What is the median home value in Paterson, NJ?
The median home value in Paterson, New Jersey is $385,000 as of March 2026. Home values have changed +4.5% over the past year, with a 5-year appreciation of 24.6%.
Is Paterson a buyer's or seller's market?
Paterson is currently a seller's market with 1.9 months of housing supply. Homes spend an average of 59 days on market, and the list-to-sale price ratio is 98.7%. Low inventory gives sellers an advantage.
Are home values going up in Paterson?
Yes, home values in Paterson have increased by 4.5% over the past year. The 5-year appreciation rate is 24.6%, meaning a home worth $308,989 five years ago is now worth $385,000.
Is it better to rent or buy in Paterson?
The average monthly rent in Paterson is $2,878, while estimated monthly homeownership costs are approximately $2,537. The price-to-rent ratio is 11.1. Based on current conditions, buying may be more cost-effective than renting in this market.
Home Values in Other New Jersey Cities
Related Resources
Disclaimer: Home value data for Paterson, New Jersey is based on publicly available market data and estimates. Actual home values may vary based on property condition, location within the city, and current market conditions. Data is updated regularly but may not reflect the most recent transactions. Last updated: March 2026.