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Zip Code 08873

Somerset, NJ • Somerset County County

Real Estate Market Analysis

Q3 2025 Report
$512,333 (March 2025)
Median Home Value
~50,000 (2025 est.)
Population
$92,000 (est.)
Median Income
Above average (GreatSchools 6–8/10 range)
School District Rating

Market Statistics

Property Values

$512,333 (March 2025)
Median Home Value
~$2,400/month (est. for 2025)
Median Rent
$311 (March 2025)
Price per Sq Ft

Market Performance

Home Appreciation5.9% year-over-year (March 2024–March 2025)
Market VelocityNeutral market; homes selling at typical pace
Foreclosure RateLow; below state average (2025 est.)

Area Information

Area Size~20 sq mi
CountySomerset County
Primary CitySomerset

Housing Profile

Housing Statistics

Total Housing Units~23,000 (est.)
Owner Occupied~60%
Rental Properties~40%
Vacant Units~5%
New ConstructionModerate; some new subdivisions and townhomes in 2024–2025

Housing Types

Single-family homesTownhomesCondosApartments

Demographics

~50,000 (2025 est.)
Population
38
Median Age
$92,000 (est.)
Median Income
Above NJ average; strong professional and healthcare sectors
Employment Rate
High; 45%+ with bachelor’s degree or higher
Education Levels
Mix of families, professionals, and retirees
Family Composition

Education Quality

School District Performance

Above average (GreatSchools 6–8/10 range)
District Rating
School DistrictFranklin Township Public Schools
Test ScoresAt or above state average
Graduation Rates~90%

Schools in Area

  • Franklin High School
  • Franklin Middle School
  • Elizabeth Avenue School
  • Rutgers Prep (private)

Economic Factors

Employment & Business

Job GrowthSteady; 2–3% annual growth (2024–2025)
Unemployment Rate~3.8% (2025 est.)
Business EnvironmentDiverse; strong healthcare, education, and logistics sectors
Commercial ActivityActive retail, office parks, and logistics hubs

Major Employers

  • Rutgers University
  • Robert Wood Johnson University Hospital
  • Johnson & Johnson
  • Local tech and logistics firms

Infrastructure & Quality of Life

Infrastructure

Transportation Access

  • • NJ Transit rail (bound for NYC)
  • • Major highways (I-287, Route 27, Route 1)
  • • Bus routes to NYC and local areas

Utilities & Services

  • • PSE&G (electric/gas)
  • • Municipal water/sewer
  • • Multiple waste/recycling providers

Quality of Life

Safety & Environment

Low to moderate; below NJ urban average

Good; ample green space, moderate traffic

Healthcare Access

  • • Robert Wood Johnson University Hospital
  • • Saint Peter’s University Hospital
  • • Multiple urgent care clinics

Development Trends

Planned Developments

  • New townhome communities (2024–2026)
  • Mixed-use retail/residential projects

Infrastructure Projects

  • • Road widening (Easton Ave)
  • • Transit station upgrades

Investment Outlook

Growth Outlook

Stable to moderate growth; demand remains strong

Investment Opportunities

  • • Townhome developments
  • • Value-add multifamily
  • • Retail/office near transit

Marketing Intelligence

Target Demographics

  • Young professionals
  • Commuters to NYC
  • Move-up families
  • Downsizers/retirees

Competitive Advantages

  • Proximity to NYC and major employers
  • Strong schools
  • Diverse housing stock

Pricing Strategies

Price near median for quick sales; premium for new or renovated homes

Common Objections & Response Strategies

Objection: High property taxes

Response Strategy:

Emphasize strong schools, services, and stable home values

Objection: Rising home prices

Response Strategy:

Highlight appreciation potential and low inventory

Objection: Traffic congestion

Response Strategy:

Promote transit options and recent road improvements

Professional Recommendations

1

Focus on transit and school quality in marketing

2

Advise buyers on competitive offers and pre-approval

3

Highlight new construction and low-maintenance options

4

Educate investors on rental yields and appreciation

5

Prepare for spring/summer listing surges

Competitive Analysis

Comparable Markets

  • 08902 (North Brunswick)
  • 08844 (Hillsborough)
  • 08820 (Edison)

Market Positioning

Balanced; appeals to both buyers and investors

Competitive Advantages

  • Lower price per sqft than Edison; better schools than North Brunswick

Price Comparison

Median price slightly below NJ average, above some neighboring towns

Investment Metrics

4.5–5.2% (multifamily, 2025)
Cap Rates
~5% gross yield
Rental Yields
~18–20
Price-to-Rent
Moderate; positive for well-managed rentals
Cash Flow
4–6% annual (2025–2026)
Appreciation

Buyer Journey Insights

First-Time Buyers

Good starter homes and townhomes; competitive but accessible

Move-Up Buyers

Plenty of 4–5 bedroom homes; strong resale market

Downsizers

Condos and 55+ communities available; low-maintenance options

Investors

Solid rental demand; value-add and new construction opportunities

Relocators

Transit and amenities attractive for NYC-area movers

This zip code analysis was generated using comprehensive market data and AI intelligence.

Market conditions change rapidly - consult with local real estate professionals for the most current information.

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