LETTER FROM OUR CEO
We have seen considerable change over the last year in the real estate industry, but through it all, New Jersey Realtors® has remained a reliable resource for our Realtor® members, state officials, and industry partners.
We continue to be a champion for private property rights, Realtors® businesses, homeowners, and real estate industry issues across New Jersey. With the help of our Government Affairs team, NJ Realtors® tirelessly advocates for our members and issues that matter most.
We strongly oppose any tax increase that makes it more difficult to buy or sell a home in New Jersey. Over the past year, New Jersey Realtors® has strongly opposed raising the Graduated Percent Fee proposed in the Fiscal Year 2026 State Budget, formerly known as the “mansion tax.” We voiced our concerns to the State Legislature and launched a Call For Action, highlighting how the tax increase would burden buyers and sellers. Since being signed into law, we continue to monitor the effects of the increased fee on the housing market, while still advocating for policies that support housing affordability in the Garden State.
During our lobbying efforts against the Graduated Percent Fee, our housing market data proved to be the most accurate and comprehensive reports in the state. We continue to be committed to providing accurate data and are ready to assist in housing market inquiries.
We hope the information in this booklet supports your work, and we look forward to continued collaboration on future legislative efforts.
Doug Tomson, CEO
PROPERTY TAXES
For the first time in our state’s history, the average property tax bill for New Jersey residents exceeded $10,000 in 2024. At a time when residents are feeling the squeeze from rising costs on everything from gas and groceries to housing, affordability remains one of the most pressing challenges facing homeowners in New Jersey.
While policies enacted over the years have helped slow the rate of property tax increases, more must be done not just to curb future increases, but to reduce the overall tax burden on our residents.
We are committed to identifying and highlighting unintended consequences of policies that would increase the property tax burden, but just as importantly, we want to be part of the solution. Whether it’s increasing the State and Local Tax deduction at the federal level, expanding shared services, or enhancing state-level property tax relief, New Jersey Realtors® is at the forefront of advocating for meaningful change on one of the most critical issues impacting housing affordability in the Garden State for both homeowners and renters.
New Jersey Realtors® strongly advocates for policies that not only control property tax growth but actively work to lower it. At the same time, we raise concerns about proposals that could lead to higher property taxes for New Jersey residents.
STATE BUDGET
After the governor releases the annual state budget proposal for the new fiscal year, New Jersey Realtors® immediately begins reviewing the proposal and engaging with the State Legislature and the governor’s administration. Our goal is to advocate against any tax or fee increases that would make it more expensive to buy or sell a home or business, or to practice real estate. New Jersey Realtors® firmly believes any proposed increases in taxes or fees related to real estate transactions will only worsen New Jersey’s affordability crisis by raising the cost of living for both homeowners and renters.
New Jersey Realtors® also supports budget initiatives that seek to improve affordability for homeowners, renters, and business owners alike to ensure New Jersey remains a place where all residents can afford to live, work, and thrive.
New Jersey Realtors® strongly opposes any new taxes or fees introduced in the state budget each year that could make it more expensive or difficult to buy or sell a home in New Jersey.
Graduated Percent Fee
Originally established in 1968 as a nominal fee intended solely to record deed transfers during real estate transactions, the Realty Transfer Fee has grown substantially in scope and impact. Over the years, the RTF has been expanded, most notably in 2004 with the addition of a supplemental fee, also known as the “mansion tax,” on buyers for home sales, and again in 2006 for commercial property sales over $1 million.
In 2025, as part of the Fiscal Year 2026 Budget, the Graduated Percent Fee, formerly known as the “mansion tax” was increased and changed to the seller, who is now responsible. Under the new structure, the seller-paid fee on properties sold for over $2 million and up to $2.5 million rose to 2%. It then increases in 0.5% increments, reaching a maximum of 3.5% for properties sold for over $3.5 million. The result: new minimum fees of approximately $40,000, $62,500, $90,000, and $122,500. These substantial costs reduce the equity sellers can retain from their home sales.
At a time when housing affordability remains a critical issue in New Jersey due to the tax burden, persistent inventory shortages, and the recent tax increases passed in June 2025, New Jersey Realtors® is concerned about any future proposals to further increase the RTF. As of May 2025, the average home sales price in New Jersey is $663,024 , resulting in the main portion of the RTF charged to all sellers exceeding $6,700. Considering the nearly 50% increase in the RTF during the first decade of this century, the newly adopted fee hikes, and the overall high cost of living in the state, we strongly believe now is not the time to further burden property transactions.
Should there be a downturn in home prices, the State Legislature must resist the temptation to raise the RTF to offset declining revenue. Increasing transfer taxes, whether on homes sold above or below $2 million, would only exacerbate affordability challenges and market instability.
Finally, given the average home price has risen by nearly $160,000 in the past two years alone, we
urge the Legislature to revisit the threshold for collecting the general purpose portion of the RTF. Currently set at $350,000, this figure is increasingly out of step with today’s market conditions. We recommend raising the threshold to at least $550,000 if not closer to the current state average, to reflect the reality of modern home prices.
New Jersey Realtors® strongly opposes any increases to the RTF or any tax that makes it more expensive to buy or sell a home in New Jersey.
Additional Real Estate Related Taxes
Whether it’s a seasonal rental tax or a professional services tax, New Jersey Realtors® opposes any measures that would make it more expensive to own or rent a home in the Garden State.
When the Transient Accommodation Tax was enacted in 2018, the State Legislature rightly ensured it would not apply to traditional seasonal rentals—those rented for less than 90 days—that have been a hallmark of the Jersey Shore for decades. With many New Jersey families, as well as visitors from surrounding states, relying on the shore for their summer vacations, now is not the time to expand this tax. Doing so would only raise the cost of visiting our state and risk discouraging families from spending time and money in New Jersey.
New Jersey Realtors® is also concerned about any proposals to impose a professional services tax or to extend the state’s sales and use tax on commissions earned by real estate licensees. These commissions are already subject to New Jersey’s income tax, and taxing them again would amount to double taxation. As with any tax that
increases the cost of buying or selling a home, this would only further strain housing affordability—one of the most urgent issues facing New Jersey residents today.
New Jersey Realtors® remains deeply concerned about—and firmly opposed to—any other taxes that could negatively impact real estate in New Jersey.
Operating Funding for the New Jersey Real Estate Commission
In light of recent challenges at the New Jersey Real Estate Commission including delays in transmitting information to licensees, posting updates on the REC website, completing timely rulemaking in response to changes in the Real Estate License Act, and preparing required forms to ensure compliance with state laws, it remains critical the REC receives sufficient funding in the state budget to effectively carry out its responsibilities.
New Jersey Realtors® believes the REC needs funding in the state budget to ensure it maintains it’s role in the real estate regulatory process.
TIME-OF-SALE REQUIREMENTS
While many time-of-sale requirements are well-intentioned and aim to promote fairness and safety in real estate transactions, these mandates can also introduce unnecessary obstacles, which make it more difficult or costly to buy or sell a home. At a time when housing affordability remains a pressing concern across New Jersey, New Jersey Realtors® believes public policy should focus on making the home buying and selling process more accessible and affordable, not more burdensome.
New Jersey Realtors® has long supported efforts to eliminate unnecessary time-of-sale requirements, including the successful repeal of the state mandate requiring fire extinguishers during fire inspections, a rule that imposed added costs without improving safety outcomes. Although we remain opposed to time-of-sale mandates as a policy approach, we have worked collaboratively with the Legislature to refine legislation in ways to protect both consumers and real estate transactions. For instance, we helped secure exemptions for seasonal rentals from lead paint inspection requirements and supported added flexibility in rain
sensor installation rules by allowing escrow funds to be used rather than delaying closings.
New Jersey Realtors® is committed to ensuring real estate transactions remain efficient, affordable, and accessible, while continuing to partner with lawmakers to advance public policy goals in a practical, balanced manner.
DEED PROTECTIONS
New Jersey Realtors® continues to advocate to ensure homebuyers and sellers are not burdened by unnecessary deed restrictions. In previous sessions, we successfully worked with the State Legislature to eliminate the recording of restrictive covenants by county clerks and to establish a process for removing such covenants from existing deeds.
New Jersey Realtors® focuses on protecting homeowners’ rights to choose the real estate company of their preference when listing their property for sale, which ensures fairness, transparency, and freedom of choice in the marketplace.
RENTAL ALGORITHMS
Emerging artificial intelligence technology in real estate, particularly rental pricing algorithms, has become an important topic in New Jersey. Rental algorithms analyze market data and other factors to recommend rental prices for landlords. However, over the past year, concerns about misuse by bad actors have led to legislative efforts in New Jersey and across the country aimed at restricting the use of these algorithms. In New Jersey, NJ Realtors® has actively engaged with lawmakers on at both the state and local levels to address legislation proposing bans on rental algorithms.
New Jersey Realtors® goal is to ensure such laws do not unintentionally hinder Realtors® in representing their clients effectively or limit their ability to use data available through Multiple Listing Services.
RENT CONTROL
Over the past year, New Jersey has seen a growing wave of legislation aimed at addressing the state’s housing inventory and affordability crisis. While this issue is critical and demands thoughtful solutions, many proposals introduced in the Legislature have taken a one-sided approach and focus primarily on policies that make it more expensive and difficult for landlords and property owners to rent out their homes.
One of the most concerning trends is the renewed push for rent control at the state level. Bills introduced in both the Senate and Assembly seek to impose or expand rent control measures across municipalities. These proposals often overlook the long-term consequences such policies have on housing supply, property maintenance, and the ability to attract investment in New Jersey’s housing market, particularly since landlords enter into contracts with tenants to provide housing.
New Jersey Realtors® has been actively engaged in raising awareness about the impacts of such measures. We are educating legislative leaders on how rent control can reduce housing availability, discourage new construction, complicate maintenance of rental properties, and ultimately worsen affordability. Rather than adopting policies that discourage rental housing, we continue to advocate for balanced, datadriven solutions that increase housing supply, support responsible development, and benefit renters, property owners, and communities near rental properties.
ENERGY MASTER PLAN
New Jersey Realtors® carefully reviews all aspects of any master plan to identify proposals that could introduce new time-of-sale requirements, such as mandatory energy audits or retrofits. We also have concerns about proposals requiring homes or businesses to convert from natural gas to electric.
Rather than adopting policies that would raise energy costs at a time when they are near historic highs, the State Legislature should focus on allocating resources to help homeowners and business owners make their properties more energy efficient. This approach would not only address energy efficiency goals but also make improvements more affordable for property owners.
New Jersey Realtors® opposes time-of-sale requirements that could make it more expensive or difficult to buy or sell a home in the Garden State.
INDEPENDENT CONTRACTORS
New Jersey Realtors® strongly supports the longstanding and continued use of the independent contractor status within the real estate profession.
In real estate, brokers oversee the agents licensed within their offices, many of whom operate under independent contractor agreements they voluntarily enter into, a practice that has been codified in New Jersey Real Estate Commission rules, state statute, and upheld by the New Jersey Supreme Court. Despite these protections, concerns remain that regulatory agencies or courts could alter this status.
Most recently, the New Jersey Department of Labor and Workforce Development proposed a rule change regarding independent contractor status and the ABC test in New Jersey for various professions. We will continue to monitor this proposal closely for its potential impact on real estate professionals.
New Jersey Realtors® strongly advocates maintaining the independent contractor status to ensure real estate professionals can continue to effectively serve New Jersey home buyers and sellers. We stand ready to work with the State Legislature on any necessary statutory measures to preserve this status.
FLOOD INSURANCE AND ENVIRONMENTAL POLICIES
New Jersey Realtors® strongly supports the continuation of the National Flood Insurance Program to ensure families living in flood zones have access to affordable and adequate insurance to protect their properties. It is equally important that insurance remains readily available when homes in flood zones are put up for sale. The continuation of this program is essential to maintaining a strong real estate market in New Jersey.
While we generally support efforts to update land-use regulations to address sea-level rise, flooding, and severe weather, we have concerns about policies that could negatively impact property owners, property values, housing production, and affordability— especially at a time when housing inventory and affordability are critical issues in the state. The upfront costs required to comply with proposals such as the New Jersey Department of Environmental Protection’s Resilient Environments and Landscapes rule will ultimately be passed on to homeowners, making it more expensive to live in New Jersey. Additionally, the elevation
requirements in the REAL rules may conflict with local zoning ordinances, potentially necessitating variances that add cost and delay to homebuilding or force reductions in home size.
New Jersey Realtors® remains committed to supporting the National Flood Insurance Program while expressing concern about well-intentioned policies that could inadvertently increase housing costs and exacerbate inventory challenges in New Jersey.
HOUSING AFFORDABILITY
New Jersey Realtors® strongly supports the First-Time Homebuyer Down Payment Assistance Program, the expansion of this initiative to include FirstGeneration Homebuyers, and the continued annual funding of these and similar programs through the State Budget. We believe these programs play a critical role in helping aspiring homeowners accumulate the savings necessary to achieve homeownership and build long-term financial stability.
By providing tax incentives to encourage first-time and firstgeneration homebuyers to save for a down payment, the State offers a vital tool to help more New Jerseyans afford their first home. Supporting legislation that promotes homeownership opportunities—especially for those who have historically faced barriers—demonstrates the Legislature’s commitment to increasing diversity in homeownership. This is a goal strongly championed by New Jersey Realtors®, who believe homeownership should be accessible to all.
New Jersey Realtors® urges the State to continue advancing policies that make homeownership more affordable and accessible throughout New Jersey. We encourage lawmakers to prioritize initiatives that expand the housing supply and address the ongoing inventory crisis—one of the greatest barriers to widespread homeownership.
Focusing inventory-specific legislation on zoning reform, expediting permitting processes, and rehabilitating abandoned residential and commercial properties would position New Jersey as a leader in creating new housing supply. These targeted efforts are essential to easing the inventory shortage and meeting the growing demand for affordable homeownership opportunities.
New Jersey Realtors® strongly supports any legislation that helps New Jerseyans buy homes and any measures that seek to expand our housing stock.
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