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Buying a home in Newark, New Jersey

Newark median home value: $396,600 (Census ACS 2024); prices up 5.5% in a year (FHFA). Essex County buyers can get up to $22,000 in NJHMFA help.

Checked on October 13, 2026 against the official sources listed at the bottom of the page.

In short

The median value of owner-occupied homes in Newark is $396,600 (Census ACS 2024; owner estimates, not sale prices). The FHFA House Price Index shows New Jersey prices up 4.6% and Newark-area prices up 5.5% between the second quarters of 2025 and 2026. New Jersey charges a state transfer tax (Realty Transfer Fee (plus Graduated Percent Fee above $1,000,000)) whose rule Payotte does not reduce to a single formula: Over $350,000: $2.90 per $500 on the first $150,000, $4.25 on $150,000 to $200,000, $4.80 on $200,000 to $550,000, $5.30 on $550,000 to $850,000, $5.80 on $850,000 to $1,000,000, $6.05 above $1,000,000; plus 1% to 3.5% of total price above $1,000,000. Selling a main home you owned and lived in for 2 of the last 5 years, the first $250,000 of gain ($500,000 for a married couple filing jointly) is excluded from federal income tax (IRS Publication 523).

Calculate for Newark

If you buy

New Jersey state transfer tax

Realty Transfer Fee (plus Graduated Percent Fee above $1,000,000): Over $350,000: $2.90 per $500 on the first $150,000, $4.25 on $150,000 to $200,000, $4.80 on $200,000 to $550,000, $5.30 on $550,000 to $850,000, $5.80 on $850,000 to $1,000,000, $6.05 above $1,000,000; plus 1% to 3.5% of total price above $1,000,000.

Purchase price in $

Price$396,600

State transfer taxnot computed

Who paysThe seller

Default price: the Newark median value of owner-occupied homes, $396,600 (Census ACS 2024). Not computed: Banded rate per $500 of consideration. Total consideration over $350,000: $2.90 on the first $150,000, $4.25 on $150,000-$200,000, $4.80 on $200,000-$550,000, $5.30 on $550,000-$850,000, $5.80 on $850,000-$1,000,000, $6.05 above $1,000,000. At or below $350,000 a lower schedule applies: $2.00, $3.35 and $3.90 per $500 in the bands up to $150,000, $200,000 and $350,000. Above $1,000,000 total, add a Graduated Percent Fee on the whole price: 1% to $2,000,000; 2% over $2,000,000 to $2,500,000; 2.5% over $2,500,000 to $3,000,000; 3% over $3,000,000 to $3,500,000; 3.5% over $3,500,000. Who pays: The seller owes the Realty Transfer Fee. For deeds submitted on or after July 10, 2025 the Graduated Percent Fee is also imposed on the seller (before that the 1% fee was buyer-paid). Not included: county and city transfer taxes, recording fees, title insurance and lender charges. New Jersey transfer tax guide · all 50 states.

If you sell

Capital gain and the federal tax on it

Same federal rule in every state: Section 121 of the Internal Revenue Code excludes up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly).

Sale price in $

Purchase price plus improvements in $

Months owned

Filing status

Your long-term rate by taxable income

Main home, lived in at least 24 of the last 60 months

Capital gain$350,000

Section 121 exclusion$250,000 (limit $250,000)

Taxable gain$100,000

Type of gainLong-term (owned over 1 year), 15% chosen

Federal tax on the gain$15,000

Section 121 excludes $250,000; the rest is taxable.

Gain = sale price minus your adjusted basis (purchase price, buying costs and improvements); selling expenses reduce it (IRS Publication 523). Long-term rates for sales in 2026, by taxable income including the gain (IRS Rev. Proc. 2025-32, section 4.03): 0% up to $49,450 single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 jointly, 20% above. Not included: New Jersey state income tax on the gain (not computed), the net investment income tax, depreciation recapture on a rental or home office, and the reduced exclusion for an early sale. Agent commissions are negotiated and never set by law. Capital gains on a home sale.

In short

The median value of owner-occupied homes in the city of Newark is $396,600, according to the Census Bureau’s 2024 American Community Survey. The FHFA price index for the Newark area rose 5.5% between the second quarters of 2025 and 2026. Buyers in Essex County can get up to $15,000 in down payment help from NJHMFA, or $22,000 for first-generation buyers.

How much homes cost in Newark

The American Community Survey (ACS) asks owners how much they think their home would sell for. The median of those answers is a useful benchmark, but it is not a sale price: it covers every owner-occupied home, including homes bought long ago. Our page on New Jersey home prices explains the method in detail.

Area	Median value, 2024 (ACS)	Margin of error (90%)
City of Newark	$396,600	±$27,643
Essex County	$578,200	±$17,656
New York–Newark–Jersey City metro area	$648,800	±$2,533
New Jersey	$496,000	±$2,982
United States	$360,600	±$618

Source: U.S. Census Bureau, ACS 1-Year Estimates 2024, table B25077. The 2025 estimates are scheduled for October 29, 2026.

Newark’s median is about $99,400 below the state median and $181,600 below Essex County’s. Because the city figure rests on a smaller sample, its margin of error is wide.

Are Newark prices rising?

The Federal Housing Finance Agency (FHFA) tracks repeat sales of the same single-family homes. Its purchase-only, seasonally adjusted index for the Newark, NJ metro division, published August 25, 2026, shows:

Area	1-year change (Q2 2025 to Q2 2026)	5-year change (Q2 2021 to Q2 2026)
Newark, NJ metro division	+5.5%	+46.0%
New Jersey	+4.6%	+50.5%
United States	+2.1%	+33.4%

Source: FHFA House Price Index, quarterly purchase-only files. Changes calculated by Payotte from the published index values. The Newark division covers the wider Newark area, not the city alone.

Prices in the Newark area have risen faster over the past year than in the state or the nation.

Closing costs at the median price

On top of the price, buyers and sellers pay closing costs: lender fees, the appraisal, the survey, title and recording fees, and taxes. Several depend on the loan and the providers you choose, so there is no single official figure. We do not estimate them on this page. For the rules and a worked example, see our guide to closing costs in New Jersey, and for the real estate transfer tax, see transfer tax in New Jersey.

Property tax in Newark

Property tax is a large part of the monthly cost of owning a home in New Jersey. Rates differ by municipality, and we do not repeat them here, so that every page shows the same figures. Read property tax in New Jersey for the rates, the exemptions and how to appeal an assessment. To see how tax can be paid through your mortgage payment, read our guide to escrow accounts.

Help for Newark buyers

NJHMFA, the state housing finance agency, lists Newark among its Urban Target Areas in Essex County, according to its June 17, 2026 First-Time Homebuyer fact sheet. In an Urban Target Area you do not have to be a first-time buyer (you must not own another primary residence at closing), and the income limit is higher: $166,080 for one or two people and $193,760 for three or more, against $138,400 and $159,160 elsewhere in Essex County. NJHMFA warns that an entire municipality may not be designated, so confirm your address with a participating lender or the agency’s Site Evaluator.

Down payment assistance in Essex County is up to $15,000, a no-interest loan forgiven after five years of living in the home, plus $7,000 for first-generation buyers. Details are in our guide to first-time buyer programs in New Jersey.

We could not read the City of Newark’s own pages, because its website refused automated access. This page therefore lists no city-specific program, tax or ordinance. Check the city’s housing department and the municipal clerk for local rules.

Before you buy

Frequently asked questions

What is the median home price in Newark?

The Census Bureau’s 2024 American Community Survey puts the median value of owner-occupied homes in the city of Newark at $396,600 (±$27,643). This is what owners think their home is worth, not the median sale price of recent sales.

Are home prices in Newark going up?

According to the FHFA purchase-only index, prices in the Newark, NJ metro division rose 5.5% between the second quarter of 2025 and the second quarter of 2026, and 46.0% over five years.

Is Newark an Urban Target Area?

NJHMFA’s June 2026 list names Newark among its Essex County Urban Target Areas, but entire municipalities may not be designated. Check your address with the agency’s Site Evaluator or a participating lender.

How much down payment help can I get in Essex County?

NJHMFA’s Down Payment Assistance is up to $15,000 in Essex County, and first-generation buyers get $7,000 more, for $22,000.

What is the property tax rate in Newark?

Rates vary by municipality and year. Our property tax guide for New Jersey has the figures, the exemptions and the appeal process.

More New Jersey guides

Sources

Table B25077, Median Value (Dollars), ACS 1-Year Estimates 2024 (U.S. Census Bureau) (consulted October 13, 2026)
2025 ACS Data Release Schedule (U.S. Census Bureau) (consulted October 13, 2026)
U.S. House Prices Rise 2.1 Percent Year over Year, Up 0.3 Percent Quarter over Quarter (FHFA, August 25, 2026) (consulted October 13, 2026)
FHFA House Price Index datasets, quarterly purchase-only indexes (state, metro) (consulted October 13, 2026)
First-Time Homebuyer Mortgage Program with Down Payment Assistance, consumer fact sheet and limits, updated June 17, 2026 (NJHMFA) (consulted October 13, 2026)
Homebuyers: loan products, fact sheets and materials (NJHMFA) (consulted October 13, 2026)

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