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Will Ridgewood Follow Greenwich With a Collapse of Property Values

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the staff of the Ridgewood blog

Ridgewood NJ, according to Garden State Initiative , once the symbol of an affluent America , Greenwich, Connecticut is enduring a collapse of its real estate market as high-earners flee the high-tax state. This was typically preceded by these homeowners establishing residences in Florida or other more fiscally attractive states. This  sounds all to familiar, New Jersey? The storm that is currently hitting Connecticut’s real estate market is starting to impact New Jersey. As high end real estate values deflate, as is occurring in Greenwich, the taxes to support local governments and schools will be redistributed to moderate and lower value property owners.

A recent Wall Street Journal report “Wealthy  Greenwich Home Sellers Give in to Market Reality” on Connecticut’s real estate market should engender concern by all New Jersey residents.  

The report documents a severe decline in prices among high-end real estate in the Nutmeg State’s most exclusive areas, chief among them Greenwich, long a symbol of modern American affluence. Despite our nation’s booming economy, the report cited story after story of owners selling homes for far below what they paid a decade or more ago.  This was typically preceded by these homeowners establishing residences in Florida or other more fiscally attractive states. (Sound familiar, New Jersey?)

The evidence is staggering. The median price for a home in Greenwich dropped by 16.7% last year to $1.5 million in the fourth quarter of 2018, according to a recent report by brokerage Douglas Elliman, with early reports showing a 25% decrease in early 2019 . In a jarring anecdote, the Journal cited “a stately Colonial-style home on Greenwich, Conn.’s tony Round Hill Road is being sold in a way that was once unthinkable in one of the country’s most affluent communities: It is getting auctioned off. Once asking $3.795 million, the four-bedroom property will be sold … for a reserve price of just $1.8 million.”

The research firm Wealth X reported New Jersey lost 5,700 people with liquid assets between $1 million-$30 million in 2018 – and that’s before the implications of the state and local tax (SALT) cap on federal taxes have truly been felt.  Recent reports indicate that New Jersey’s income tax receipts are falling well below projections,

Expect the flight from New Jersey to accelerate  with the new proposed millionaires tax . Connecticut has a top marginal tax rate of 6.99%; last year’s budget agreement increased NJ’s to 10.75%. The top 2% of all NJ income tax filers (who make more than $500,000 per year) account for over 40% of all income tax revenue to the state. Since close to 40 percent of state revenues are from personal income taxes, increasing dependence on revenue from this group exacerbates our vulnerability at both the state and local level. An individual loss in this income category reverberates throughout the state.

25 thoughts on “Will Ridgewood Follow Greenwich With a Collapse of Property Values

  1. RE: “Will Ridgewood Follow Greenwich With a Collapse of Property Values”?
    .
    I don’t know…
    Did Greenwich build a Ginormous Garage?
    Did Greenwich destroy its school system by replacing academic discipline and innovation indoctrinate its students with political correctness and Agenda 21 dogma?
    .

  2. agree with Anon

    Just look across from whole foods Huge Brogan development..heads in beds next to a railroad horn blasting them out of their shoes and beds..next the massive development
    aside the train station underpass..next the Bolger shanty near the YMCA..soon that whole row will be rental wood frame walk ups..

    not a pretty picture or outlook..schools will be mobbed by rentals..stack EM up..
    let the ridgewood property owners foot the bill…for schools and services longer
    term..those Van lines will continue south with our retirees who’s former empty nest will be loaded with new families and small and middle school high schools kids. progress ?

    let’s thank the crew in charge right now

  3. The median home price in Greenwich is still 2x greater than Ridgewood. Completely different market of owners/buyers.

  4. If you voted for Paul Aronnsohn and company you voted for the destruction of Ridgewood and your property values . Elections ;have consequences, man up and accept your failure

  5. If you voted for Paul Aronnsohn and company you voted for the destruction of Ridgewood and your property values . Elections ;have consequences, man up and except your failure

    Said by the guy who NEVER lived in Ridgewood, NEVER voted in Ridgewood and NEVER paid Property Taxes in Ridgewood, isn’t that right James.

  6. I did not vote for them so can I get them to buy my house when property values collapse? The Gov deserves a bit of responsibility too with the tax hikes chasing out older people. That goes for NY CT too.
    https://www.cnbc.com/2019/02/15/charlie-munger-says-california-connecticut-have-been-stupid-for-driving-rich-people-away.html

  7. sorry no its not

  8. and dont be such a coward ;
    If you voted for Paul Aronnsohn and company you voted for the destruction of Ridgewood and your property values . Elections ;have consequences, man up and accept your failure

  9. Accept, accept not except.

  10. for sales signs rapidly sprouting up In Ridgewood

    lots of large hi taxed property’s …Salt high taxed local ,state and federal deduction loss victims

  11. except ,when not accepting ..reality… we are all in trouble due overbuilding taxes…and the current administration..

  12. Why do the people who gripe the most about a particular issue typically seem the least intelligent in both the ability to spell and form a coherent paragraph? Perhaps they are senile.

  13. Not only have our small town local leaders failed on the development front. The State has us screwed because they can override local towns if developers sue and get state judges to force development on us. You will also see that the State has a complex web of incentives where it tries to get certain kinds of development. Aside from the obvious, such as tax breaks to build or set up business in a blighted area like Paterson, they have a mind numbing number of other programs and incentives. Stupid things such as trying to incentivize building within walking distances to transit hubs because it is perceived of as good for the environment are part of why we see buildings going up next to train tracks (see the huge apartment building in Waldwick?) So it does matter that our State legislature has been pursuing an agenda for decades.
    see here=
    https://njgin.state.nj.us/OIT_BusinessMap2/

  14. good point Bill

    Even new massive rental apts on the edge of RADBURN

    BRAND NEW more to come on same sight..NJT PUSHES
    THE TRANSIT village concepts on placarded train platform
    ads to computers In north jersey bergen county

  15. I really don’t believe that the residents who read Patch voted for Paul and his crew. The ones who go for glam and are very wealthy and either don’t vote at all or voted for him. Unfortunately, we have such a limited changeover that it takes a long time to clean out the incumbents. Very few individuals want to run and be besmirched.

    P.S. James grew up in Ridgewood and went through Ridgewood schools. His family lived in the same neighborhood as we do.

  16. James, and dont be such a coward ; just admit you do not live in Ridgewood, don’t vote in Ridgewood and NEVER paid Property Taxes in Ridgewood, isn’t that right James.

  17. No I did not vote for the 3 amigos

  18. Current VC is doing nothing, not tranparent, not helpful and not listening

  19. “for sales signs rapidly sprouting up In Ridgewood”
    .
    new here?
    That’s just the normal graduation season flight of the empty-nester, a common bird in Ridgewood.
    .

  20. Here. Fixed that fer ya…
    .
    Why do the people who gripe the most have no substinative reply about a particular issue typically seem the least intelligent in both the ability to spell and form a coherent paragraph reply and form a coherent argument? Perhaps they are senile have no valid position.
    .

  21. Ha Ha. Good one “taxpayer”.
    .
    your attempts to foist Aronsohn’s debacle on the current council is transparent and not effective.
    .
    the current council is disappointing in many ways, but the Aronsohn cabal was destructive… and purposefully so.
    .
    no comparison.
    .

  22. You can’t blame people who voted for Airbag the first time he ran – – he mislead us all. he had a knack for telling everyone what they wanted to hear.

    but you can blame everyone who failed to call him out once his lies and nasty tone became apparent.

    and you can blame those who vote for anyone he supports.

  23. Congrats Kieran

  24. and the roads are awful!

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