Asbury Park housing prices boom, but can you afford it?

Austin Bogues | Asbury Park Press

Show Caption Hide Caption Tips for buying a house in Asbury Park Travis Newarski explains tips for buying a home in Asbury Park, where real estate prices have boomed

ASBURY PARK - When Connie King started selling real estate nearly 20 years ago at the Jersey Shore, Asbury Park was an afterthought for wealthy customers from North Jersey and New York.

"They wanted to bring a police escort with them if they were going into Asbury Park to see houses," King said.

Times have changed.

Welcome to the new era of Asbury Park, where some summer rentals are in the $40,000 range and real estate prices have surged in the city named "Coolest Small Town in America" last year by Budget Travel Magazine.

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These days, King and other real estate agents said the Asbury Park housing market is booming, in some instances, above the asking price. The housing prices aren't just higher on the thriving east side. Homes in the city's northwest corridor have also seen sale listing prices picking up, King said.

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But along with the city's surging real estate market, questions are continuing to surface about what can be done to make housing more affordable for city residents. The median household income in Asbury Park is about $36,000, according to the U.S. Census Bureau estimates for 2016, half that of the state as a whole.

Travis Newarski, a co-owner of Berkshire Hathaway HomeServices Signature Properties, a real estate firm in Asbury Park, said the city's real estate market is among the most in-demand along the Shore.

In 2017, Newarski said the median home sale price in Asbury Park was $375,000. That's up from $240,000 in 2012, an increase of nearly 43 percent.

The first quarter of 2018 saw a median sale price of $360,000, compared to $318,000 in during the same period in 2017, according to Newarski. The first quarter of the year is typically slower for home sales.

Newarski said it's not uncommon now to see homes sell for more than $1 million. He recently helped sell a home located at 301 7th Ave., which is under contract for $1.3 million. You can watch a video above where he gives tips for buying a home in Asbury Park.

Other Shore towns in Monmouth also saw increase in housing prices. In Red Bank the median sales price jumped from $301, 250 in 2012 to $365, 500 in 2017, according to the Monmouth Ocean Regional Realtors, a professional trade association. Long Branch saw its median sale home price jump from $242,000 to $335,000 and Ocean Township saw an increase in median home sale prices from $330,000 to $395,000 in 2017.

Asbury Park's popularity has "spilled over" to neighboring areas, including the Wanamassa section of Ocean Township, Mayor Chris Siciliano said. "Some folks who couldn't find housing in Asbury Park are looking into nearby localities," he said.

Newarski said rental prices in Asbury Park have also increased. In 2012, the average rent for a one-bedroom apartment was $1,026. By 2017, that increased to $1,486, Newarski said. He said that prices increase for apartments located closer to the city's waterfront. Newarski said that while prices have also risen for summer rentals, many property owners have a hard time fetching top dollar for them. "They're getting a little tougher to move," Newarski said.

The increase in housing costs could continue as iStar, the city's master waterfront developer, will open a new luxury building in Asbury Park next year, the Asbury Ocean Club, Surfside Resort and Residences at 1101 Ocean Avenue. You can see a video of what the building will look like below.

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The promotional site for the 16-story building on the Asbury Park waterfront asks prospective buyers to choose from a price range from "under $1 million" to "$5 million plus."

You can also check out drone footage of the building here.

Drone footage of Asbury Ocean Club This video from Greg Gomes of SkyVue showcases a breathtaking look at the new Asbury Ocean Club.

The surge in real estate prices is reflected in net taxable property values.

The projected 2018 net taxable property value, which includes residential and commercial property climbed to $1.64 billion, up from $1.37 billion in 2017, an increase of 20 percent. By comparison, in 2014 the net taxable property valuation was about $1.18 billion.

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Over the same period, Colts Neck property values rose by 1.1 percent, Neptune jumped by 8.8 percent, and Long Branch increased by 3.8 percent, according to data supplied by the Monmouth County Tax Assessor Office.

King puts it bluntly.

"I think it's on the verge of being un-affordable but it’s a good place to invest in," she said, referring to the Asbury Park housing market.

Tracy Rogers, 50, who is part of the Asbury Park Affordable Housing Coalition, which advocates for increased low-income housing opportunities in the city, said the influx of investors needs to be balanced. He said high rents are pushing some of the working-class members of the city out and could lead to gentrification.

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"They're coming and they're rushing in to take advantage of the opportunity of creating high-rent properties," Rogers said. "We have to look at the people who have been here. What we want to look to do is create a vibrant city with diversified incomes and diversified ethnic backgrounds."

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Deputy Mayor Amy Quinn said the city is working with a private consulting firm, Clarke, Caton, Hintz, to help draft an inclusionary zoning ordinance, that would mandate new construction come with a certain percentage of affordable housing units.

Quinn said the city council is also meeting with community groups to help get input on a prospective inclusionary zoning ordinance and would hold public meetings later this summer. "It's absolutely a priority to have more affordable housing," Quinn said.

Austin Bogues: 732-643-4009; abogues@gannettnj.com