state where the median home price continues to climb past $400,000, finding an affordable place to live in New Jersey can feel like searching for a needle in a haystack. But for those willing to look beyond the usual hotspots like Hoboken or Montclair, there are still some hidden gems offering charm, community, and affordability — if you act fast.
Here are three lesser-known New Jersey towns where buying a home is still within reach for many families and first-time buyers.
1. Pitman, Gloucester County
Pitman, a small borough in South Jersey, combines small-town charm with cultural appeal. Once a Methodist summer camp, this historic town has evolved into a lively community known for its arts, music, and theater scene.
Why it’s affordable:
Pitman’s median home value hovers around $339,000, which is about 15.8% below the New Jersey average. The town offers a walkable downtown, vintage architecture, and a calendar full of events like craft fairs and parades — without the high price tag.
What you’ll love:
- Local shops and coffeehouses along Broadway
- The Pitman Gallery & Art Center
- Family-friendly parks and recreational programs
Fun Fact: Pitman is also known for its unique circular street layout, originally designed around its Methodist campgrounds.
For cost of living and real estate trends, visit New Jersey Department of Community Affairs and NJ Housing Resource Center.
2. Phillipsburg, Warren County
Phillipsburg sits along the Delaware River, right on the border with Pennsylvania. Though often overshadowed by nearby Easton or Bethlehem, PA, this town has a lot going for it.
Why it’s affordable:
The median home value in Phillipsburg is around $318,000, and the cost of living is about 12.6% lower than the national average. That makes it one of the more budget-friendly spots in the state.
What you’ll love:
- Scenic views of the Delaware River
- Access to hiking and outdoor adventures in the Delaware Water Gap
- A community-focused feel, with farmer’s markets and local festivals
Did You Know?
Phillipsburg was once a booming railroad and manufacturing town. While industry has declined, its historical buildings and warehouses have become attractive spots for buyers and renovators alike.
3. Clayton, Gloucester County
Clayton may not be the first place that comes to mind when you think of affordable housing in New Jersey, but this quiet town delivers in terms of price and quality of life.
Why it’s affordable:
Homes in Clayton average around $291,000, making it about 15.8% more affordable than the state median. For families or young couples looking to put down roots, this is a major advantage.
What you’ll love:
- Spacious single-family homes with yards
- Access to schools with solid reputations
- A safe, suburban vibe with easy access to Philadelphia
Extra Bonus:
Clayton is part of the broader South Jersey suburban sprawl, giving you the benefits of both quiet living and nearby urban opportunities.
Why These Towns Stand Out
In 2025, affordability in New Jersey housing is increasingly rare. Urban sprawl, rising mortgage rates, and limited inventory have made it tough for new buyers to enter the market. Yet towns like Pitman, Phillipsburg, and Clayton offer a surprising opportunity for those willing to think outside the box.
These towns deliver:
- Lower housing costs
- Strong community identity
- Access to nature and family-friendly amenities
For anyone relocating within New Jersey or moving in from out of state, these areas offer a blend of value and livability that’s becoming increasingly difficult to find.
Act Now — Before Prices Catch Up
As more buyers look for alternatives to pricier cities like Jersey City, Newark, or Princeton, interest in these “hidden” towns is expected to grow. Once quiet communities may soon become hot real estate markets.
If you’re thinking of buying in New Jersey and affordability is top of your list, don’t wait too long. These towns might be under the radar now — but with housing costs rising everywhere, they might not stay that way for much longer.