How are rents in New Jersey so small compared to the high taxes and to the high property prices?

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If the unit is paid for (not financed), it would be making the full 2100 a month profit. After 14 years (approx), it would have paid for it self, and probably appreciated quite a bit also.

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This depends on where the property is located. New Jersey is a long state that runs from being across the river from NY in the North down to Delaware in the south. On it’s west it has Philadelphia and of course the east is the Atlantic Ocean.

There are varied economies that border NJ enough to influence it’s own economy and will affect home prices. For example, in South Jersey homes are very reasonably priced. You can easily get a place that has at least a 1/4 acre of land with 3 bedrooms and 1+ baths for around $200k. If you travel deeper into the state you can get much more for less.

This is a far cry from some of the areas in the north that border NY. Home prices there are reflective of the economy of NY as many people work in NY and travel to NJ to live. In NY it is common place to purchase a property with the expectation of losing money on the rent each month. It’s the way the local economy works.

Lastly, you are wise to check out the rental prices against the purchase prices to see what is a better option. Which is smarter, however, depends on your thinking. I would never rent a property from anyone else unless it was absolutely the only way I could survive. Renting only builds up equity for someone else. Why would I want to do that? I prefer to build up my own equity.