Unlocking New Jersey Property Potential: 3-Bedroom vs. 4-Bedroom Resale Values

nj home value real estate market 2023

In today’s fluctuating real estate market, one question that often arises among savvy homebuyers is: “Should I invest in a 3-bedroom or a 4-bedroom home?” This decision can have significant implications for resale value down the line.

Whether you’re trying to decide between the flexibility of a guest room or the luxury of a larger master bedroom, understanding the local market trends is crucial.

Many factors come into play when considering the potential resale value of a property. The same square footage can yield different returns depending on whether it’s divided into three bedrooms or four. But how does this translate to your local market? In this post, we’ll delve into the nitty-gritty of the 3-bedroom vs 4-bedroom debate, helping you make an informed decision based on your needs and the potential return on investment.

What is Resale Value?

In the world of real estate, resale value is a term that gets thrown around quite a bit. But what exactly does it mean? Simply put, resale value refers to the estimated amount that a property owner can expect to receive upon selling their property in the future. It’s the potential return on investment that a homebuyer can anticipate when they decide to sell their home down the line.

Resale value is the projected price that a property can fetch in the open market at any given time in the future. This estimation is based on various factors, such as the property’s location, size, condition, upgrades, and the current market conditions. For instance, a 4-bedroom home might have a higher resale value than a 3-bedroom home in the same neighborhood due to its larger size and additional bedroom.

Factors That Impact Resale Value

Several factors can influence a property’s resale value. Here are a few that are particularly relevant when comparing 3-bedroom homes to 4-bedroom homes:

Number of Bedrooms

The number of bedrooms in a house can significantly impact its resale value. For example, a 4-bedroom home typically has a higher resale value than a 3-bedroom home, simply because it offers more space. The extra bedroom can serve various purposes, such as a guest room, a home office, or a playroom for kids, making the property more appealing to a wider range of buyers.

Size and Layout

The overall size and layout of a house also play a crucial role in determining its resale value. A home with a spacious, efficiently designed layout will generally command a higher price. This is why it’s always a good idea to look at the details of a home’s floor plan and, if possible, make arrangements to walk through the home, in person before making an offer on a property. It’s not always appropriate to count on the number of bedrooms alone to determine value as a large 3-bedroom home may be worth more than a cramped 4-bedroom home.

Condition and Upgrades

The condition of the house and any upgrades made also contribute to its resale value. For example, a 3-bedroom home with a modern kitchen and a finished basement bedroom may fetch a higher price than a 4-bedroom home that’s in need of significant repairs.


The location is a key factor impacting home resale values, particularly in the areas served by MSC Enterprises, a renowned luxury home builder in Ocean and Monmouth County, New Jersey. These counties encompass diverse neighborhoods with varying attractions that influence resale values significantly.

Sought-after areas like Asbury Park and Red Bank, close to the coast, and towns such as Freehold near business hubs, command higher property values due to their desirability and accessibility. Furthermore, the quality of school districts, urban versus suburban living, and proximity to natural attractions like parks, rivers, and woodlands also play essential roles in determining resale values.

MSC Enterprises, with expertise in both commercial and residential real estate development, aids clients in choosing locations that align with their lifestyle and investment objectives, thus contributing to robust resale values in these thriving New Jersey markets.

Market Trends

Today’s real estate market is influenced by numerous factors, and one key element is the number of bedrooms in a home, whether it’s a 3-bedroom or 4-bedroom property. But this decision is just one part of the complex interplay between market dynamics and resale values.

Mortgage interest rates, which have steadily risen to around 8%, and the persistent issue of low inventory are shaping the real estate landscape across New Jersey and the entire United States. In an environment where inventory is scarce, larger homes, like 4-bedroom houses, are often more sought after due to their flexibility.

nj home resale value 2023

This higher demand can directly affect their resale values, although it’s important to remember that the broader market context plays a substantial role in determining how these factors interact and ultimately impact resale values. In this dynamic market, understanding the intricate relationship between interest rates, inventory, and property attributes is essential for making well-informed decisions regarding resale values.

The Home Market In New Jersey

The housing market in New Jersey, as per the latest data from the US News Housing Market Index, paints a picture of both strengths and weaknesses. It ranks 40th out of 57 markets, showcasing its unique characteristics.


Mortgage Delinquencies: New Jersey displays a positive trend in mortgage delinquencies, reflecting responsible homeownership.

Rental Vacancy Rate: A lower rental vacancy rate indicates a healthy demand for rental properties, which can also influence home values positively.

Unemployment Rate: The steady unemployment rate is a sign of economic stability, essential for maintaining a robust real estate market.


Permits to Household Growth Ratio and Permits to Employment Growth Ratio: These ratios suggest that while the demand for housing is increasing, it might be trailing behind in new construction.

Builder Sentiment: Builder sentiment, though improving slightly year on year, still has room for growth, indicating potential challenges in the construction sector.

The U.S. News Housing Market Index stands at 61.6, showing a 2.5-point increase year on year. In the demand category, employment numbers remain strong, with over 10 million jobs and an unemployment rate of 4.9%, while consumer sentiment reflects optimism, increasing by 11.3 points year on year.

New Jersey has 3.272 million (as of 2020) and In September 2023, home prices in New-Jersey were up 9.3% compared to last year, selling for a median price of $494,000.

On the supply side, New Jersey maintains a stable housing supply, with a 3.6-month inventory, showing only a slight decrease of 0.03 months year on year. Rental vacancies are at 4.1%, indicating a healthy demand for rental properties, and builder sentiment is slowly improving at 48 points, an increase of 1 point year on year.

The architectural billings and construction jobs are also on the rise, pointing to the expansion of the construction sector. Architectural billings are at 49.3, marking a 0.9-point increase year on year. Construction costs have risen slightly by 0.4% year on year.

In terms of housing finance, New Jersey’s price-to-income ratio remains low at 0.31, while the rent-to-income ratio is also favorable at 0.39. However, interest rates have increased by 1.85% year on year, standing at 7.07%, which can affect affordability. The state has relatively good access to credit at 10.9, but delinquencies and foreclosures have seen slight increases at 2.9% and 1.3%, respectively.

The New Jersey housing market, especially in areas like Monmouth County and Ocean County, reflects a mixed landscape of strengths and weaknesses. Its low unemployment rate, rising median home prices, and strong demand for rentals indicate an active and competitive market. However, the challenges presented by permit ratios and rising interest rates must be navigated for sustainable growth in the future.

Monmouth County and Ocean County: Hotspots in the NJ Home Market

Monmouth County and Ocean County have emerged as hotspots in the New Jersey home market. These counties offer a unique blend of suburban tranquility and easy access to bustling city centers, making them ideal for families, young professionals, and retirees alike.

MSC Enterprises has been at the forefront of developing appealing residential properties in these areas. Their expertise lies in matching tenants to potential real estate sites, ensuring they find the perfect location for their residential or business needs.

Whether it’s a 3-bedroom family home or a 4-bedroom property with a finished basement bedroom, MSC Enterprises focuses on building homes that cater to the diverse needs and preferences of their clients. They offer a range of services, including leasing, management, and development of commercial and retail properties, further solidifying their position as a trusted name in New Jersey’s real estate scene.

Resale Value of 3-Bedroom Houses

One of the most common types of homes on the market today is the 3-bedroom house. These properties are popular among families, as they provide ample space for parents and children, while also offering the potential for a home office or guest room. But how do these homes fare when it comes to resale value? Let’s delve into the current market trends for 3-bedroom houses and look at some examples to illustrate their resale values.

Current Market Trends for 3-Bedroom Houses

According to recent data, the average price for a 3-bedroom house is influenced by the overall trends in the housing market. Depending on the state you call home, the typical three-bedroom house can list at anywhere from about $125,000 to more than $740,000 In 2021, Yahoo Finance gave the following statistics:

New Jersey in 2021

  • Average 3-bedroom home value: $362,709
  • 20% down payment: $72,542
  • Average effective state property tax: 2.21%
  • Monthly mortgage payment: $1,885

New Jersey in 2023

  • Average 3-bedroom home value: $445,613
  • 20% down payment: $89,123
  • Average effective state property tax: 2.21
  • Annual property tax: $9,848
  • Monthly mortgage payment: $3,090
  • Annual mortgage cost: $37,084

During a seller’s market, when demand outpaces supply, the prices for 3-bedroom houses tend to increase. This is because buyers are competing for a limited number of houses, driving up the prices.

In addition to the broader market trends, local real estate markets can also significantly impact the resale value of 3-bedroom houses. This suggests that the resale value of 3-bedroom houses in these areas could be higher due to the strong local real estate markets.

Resale Value of 4-Bedroom Houses

The real estate market is a dynamic entity, with trends and values constantly shifting in response to various factors. This can be particularly significant when considering the resale value of 4-bedroom houses. Let’s dive into the current market trends for these types of properties and explore some case studies to illustrate their potential resale values.

Current Market Trends for 4-Bedroom Houses

The demand for 4-bedroom houses has been increasing in recent years, as indicated by the rise in the share of single-family homes started with four bedrooms or more from 42.6% in 2019 to 45.2% in 2020. This trend suggests that 4-bedroom houses are becoming more desirable, which could positively impact their resale value.

Motley Fool refers to typical home prices in New Jersey as of August 2023:.

Typical home price in New Jersey: $507,923 (145% of typical U.S. price)

  • Typical single-family home value in the third quarter of 2023: $507,923
  • Median household income as a percentage of home value: 19%

The most densely populated state, a typical single-family home in New Jersey is priced by Zillow at $507,923. The median household income in New Jersey is above the U.S. median, but it’s not enough net income-to-home-value ratio to be considered affordable.

This high price tag indicates that 4-bedroom houses can command a significant return on investment when it comes to resale.

However, it’s essential to note that local market trends can also significantly influence the resale value of 4-bedroom houses. For instance, in markets like Memphis and Las Vegas, the demand for larger single-family homes over apartments is strong.

The resale value of a house is influenced by numerous factors, including the number of bedrooms, size, condition, location, and current market trends

While 4-bedroom houses typically command higher prices due to their larger size, the resale value of 3-bedroom houses is also substantial, benefiting from their popularity among families and the potential for a diverse range of uses.

Local market conditions play a critical role in determining the resale value, with areas witnessing a surge in housing prices likely to offer higher returns. Therefore, when making a purchase decision, it’s crucial to consider these factors, alongside your personal preferences and needs, to ensure a good return on investment.

Call 732-905-0005 or Contact Us to discuss a quote for your new jersey home builder project


  • Michelle Garofalo

    Michelle Garofalo is the guiding force behind MSC Enterprises, LLC, a prominent custom home builder and real estate developer in Monmouth County and Ocean County, New Jersey. With over 25 years in real estate development, her expertise extends from a successful career in the solar industry, where she managed over 75MW of projects. Co-founding Infiniti Energy, Michelle now oversees day-to-day operations and leads business development, ensuring a seamless journey for clients. Her meticulous approach and commitment to excellence are reflected in MSC's residential and commercial properties, known for their quality, durability, and energy efficiency.

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