Soaring Prices Threaten Sherrill’s Housing Promises

A red For Sale sign against a blue sky with clouds

Inflated real estate prices in New Jersey pose a direct threat to affordable homeownership, challenging Gov.-elect Mikie Sherrill’s ability to deliver on her campaign promises.

Story Highlights

New Jersey faces a severe housing affordability crisis with rocketing home prices.
Gov.-elect Mikie Sherrill promises a comprehensive plan to tackle the issue.
Sherrill’s strategy involves increasing housing supply and supporting municipalities.
Challenges include balancing growth with environmental concerns.

Understanding New Jersey’s Housing Crisis

New Jersey’s housing market is under immense pressure, characterized by soaring prices and a shrinking inventory. Between 2019 and 2024, the state experienced the second-largest decline in available housing in the U.S. This reduction intensified competition and drove prices to new heights, making housing affordability a critical issue in state politics and the gubernatorial race. As of 2025, the affordability crisis remains a top concern for citizens and policymakers alike.

Gov.-elect Mikie Sherrill’s Strategic Plan

Mikie Sherrill, recently elected as Governor of New Jersey, has prioritized tackling the housing affordability crisis. Her proposed agenda focuses on increasing the housing supply, protecting open spaces, and supporting municipalities. Sherrill plans to work collaboratively with local governments to meet housing obligations, crafting incentives and tools to lower costs. By focusing on “Missing Middle” housing and repurposing underutilized infrastructure, her administration aims to address the housing shortage effectively.

Sherrill’s plan includes reinstating regional contribution agreements (RCAs), using data-driven quotas, and incentivizing the redevelopment of underutilized properties. Over 430 municipalities have joined new state programs to expand housing options, indicating broad support for her initiatives. However, the success of these measures depends on legislative follow-through and local cooperation.

Challenges and Implications

While Sherrill’s plan is ambitious, it faces several challenges. Balancing growth with environmental protection and local character preservation remains a contentious issue. Municipal governments, responsible for local zoning and development approvals, must align with state mandates to ensure policy success. Furthermore, the political feasibility of reinstating RCAs and passing necessary legislation remains uncertain. Nonetheless, if implemented effectively, these policies could increase housing supply, moderate price growth, and improve affordability in the long term.

The broader implications of Sherrill’s housing strategy extend beyond residential markets. An increase in housing could attract businesses and workers, boosting the tax base and reducing outmigration. Socially, this could lead to greater diversity and stability in communities, although it may also provoke resistance to increased density. Politically, housing policy is likely to remain a divisive issue, with ongoing debates over local control and state mandates.