Republicans seeking to eject Democratic incumbents from two General Assembly seats in this November's elections for the 2nd Legislative District are hoping voters will endorse their arguments that Democrat-backed policies on casino taxation have damaged the economy of Atlantic City and its county.
GOP candidates Phil Guenther and John Risley believe they can help overcome a big Republican deficit in voter registration in the Atlantic County district by convincing voters that a 10-year freeze on casino taxation under the city's 2016 payment in lieu of taxes (PILOT) program has driven up taxes for other property owners and hurt the local economy.
'We need to eliminate or restructure the taxes being frozen in Atlantic City,' said Guenther, in an interview. 'Our preference would be that we get the property valuations right for the casinos, that legislatively we find a way that is fair to value the casinos and tax their properties.'
2019 Annual Report of the New Jersey Casino Revenue Fund Advisory Commission. Atlantic City) was spent promoting the legislation. Overall contribution to the economy of New Jersey remains considerable. $150,000,000 $170,000,000 $190,000,000 $210,000,000.
Atlantic City is a city located in New Jersey.With a 2020 population of 38,041, it is the 23rd largest city in New Jersey and the 1035th largest city in the United States. Atlantic City is currently growing at a rate of 0.39% annually but its population has decreased by -3.83% since the most recent census, which recorded a population of 39,558 in 2010. Households, 2015-2019: 15,504: Persons per household, 2015-2019: 2.41: Living in same house 1 year ago, percent of persons age 1 year+, 2015-2019: 81.3%: Language other than English spoken at home, percent of persons age 5 years+, 2015-2019: 48.2%: Computer and Internet Use.
Guenther said Assemblyman Vince Mazzeo, one of the incumbent Democrats, wrote the legislation that froze the casino taxes at a time when five of the city's 12 gaming halls had closed because of competition from gaming in nearby states.
'Most tax revenue from casinos goes to Trenton to begin with, and now one source of revenue for the city is frozen,' Guenther said. 'That was the direct result of legislation that Mazzeo authored.'
Rich DiCriscio, a spokesman for the Democrats' campaign, said the PILOT program had helped to stabilize both tax revenue from the casinos and the broader Atlantic City economy.
Helping a city on the brink
'Atlantic City was on the brink of bankruptcy when Vince Mazzeo took office in 2014,' DiCriscio said. 'He quickly took action, passed the PILOT legislation to stabilize tax rates in the city, and now Atlantic City's economy has turned around. That legislation is single-handedly responsible for ensuring that casinos paid their fair share into the city's budget and kept Atlantic County taxpayers from picking up the tab.' Longshot accumulator tips 3.
The Republicans also argue that the state takeover of Atlantic City government by the administration of former Gov. Chris Christie in November 2016 needs to end despite last year's announcement by Gov. Phil Murphy that the state will continue to oversee the city's perilous finances, possibly until the scheduled end of the program in 2021.
Guenther and his running mate, John Risley, oppose a plan by Mazzeo to transfer local taxing authority to the county from its municipalities because it would increase costs to taxpayers and weaken local control.
'The plan would create a county bureaucracy which would take over all the assessments and all the workings of the tax assessors in all the towns in Atlantic County,' said Risley, a stockbroker and investment adviser. 'We would have to hire a lot of people, and it would take all local control away and put it all in the county's hands.'
Mazzeo said through a spokesman that he supports a countywide tax assessment because it would cut costs and help reduce property taxes. 'It's long past time that we address the sky-high property taxes across our state and find a way to shrink redundant government costs without cutting services,' he said.
Even if the Republicans win the district, Risley said he has no illusions that they will be part of a majority in the Legislature. 'Will be in the minority, no question about it,' he said. 'It doesn't bother me because I'm all about Atlantic County.'
For his part, Mazzeo focused on the district as a whole, and pledged to continue to work for lower property taxes.
Paying less in taxes and for prescription drugs
Mazzeo, 55, a small-business owner who lives in Northfield, said he has made some progress on curbing property taxes since the last Assembly election in 2017 but that more remains to be done. 'Too many seniors and hard-working families in Atlantic County pay too much in property taxes and for prescription drugs,' he said in a statement.
He acknowledged that the district is among about a half-dozen of a statewide total of 40 that will be competitive in the Nov. 5 election but predicted that he and his running mate, Assemblyman John Armato, will prevail.
'My district has been competitive for over a decade and I know that a win is never handed to you in Atlantic County,' he said. 'My district has always been targeted in the past, but I have found a way to win because Atlantic County families know that I am on their side.'
In 2017, Mazzeo and Armato won 28 and 26% of the vote, respectively, some six percentage points ahead of Republicans Vince Sera and Brenda Taube.
Guenther said the GOP would work to overcome the Democrats' advantage of about 16,000 registered voters by working to attract the district's approximately 57,000 unaffiliated voters (more than those registered for either of the main parties), urging high turnout among Republicans and hoping to attract any Democrats who are frustrated by the incumbents' record.
Still, the larger number of registered Democrats may exaggerate the party's advantage because many of them are in Atlantic City where turnout is traditionally low, said Ben Dworkin, director of the Rowan Institute for Public Policy and Citizenship at Rowan University.
Registration not deciding factor
Is Atlantic City Going Out Of Business
'Voter registration doesn't mean as much here,' Dworkin said. 'The Democrats have a clear plurality in terms of voter registration but many of those votes are in Atlantic City which historically doesn't have the kind of turnout that Democrats would always want.'
He noted that the district is one of only two among the state's total of 40 where representation in Trenton is split between the parties; the district's state Senate seat has been held by a Republican, Chris Brown, since 2017.
The GOP candidates see Brown's incumbency, and the fact that he previously served three terms as an assemblyman in LD2, as hopeful signs that they can seize the district from the Democrats.
'The model that we know has been successful already has been Chris Brown's election to the Assembly and the Senate,' Guenther said. 'We believe that the people in the second district understand the issues. Our challenge is to make sure we get that information out.'
Guenther, 61, who was mayor of Brigantine for 25 years until January 2018, said he had been planning to retire but was persuaded to run for the Assembly by GOP officials. He is a former teacher and school principal, and now superintendent of the Atlantic County Vocational and Special Services school districts.
Armato, 71, a retiree from Buena Vista Township, said he will focus on reducing property taxes by working to cut costs and fully fund the state's school-funding formula if elected to a second term.
'Providing property-tax relief is always a priority,' he said in a statement. 'We have made some great strides during the last two years, but New Jersey still needs to fully fund the school-funding formula and focus on shared services to bring property taxes down.'
He played down the possibility that national politics will influence the local race now that President Donald Trump is under threat of impeachment, saying that 2nd District voters are more concerned with local issues.
'President Trump has been at the center of the media's attention for four years but that isn't what people talk to me about at their doors,' he said.
Jump To Another Year In The Atlantic City Real Estate Market:
The Atlantic City real estate market has been hit hard by the current pandemic. Local unemployment appears to have been less insulated from volatility than most of the country. As a result, consumer confidence in the housing sector has been shaken, and now serves as a primary obstacle on the road to recovery. Nonetheless, real estate in Atlantic City has made up a lot of ground since the last recession.
Near-term prospects for the Atlantic City housing market aren't as bright as they were at the beginning of the year. However, the disruption brought about by COVID-19 has created a window of opportunity for patient investors. Emerging fundamentals suggest well-positioned entrepreneurs can take advantage of an attractive rental market. There are now several indicators working heavily in favor of prospective landlords in the Atlantic City real estate market.
Atlantic City Real Estate Market 2020 Overview
Median Home Value: $116,711
1-Year Appreciation Rate: +10.4%
Median Home Value (1-Year Forecast): -1.4%
Median Rent Price: $1,400
Price-To-Rent Ratio: 6.94
Betfair hedging. Unemployment Rate: 24.0% (latest estimate by the Bureau Of Labor Statistics)
Population: 37,743 (latest estimate by the U.S. Census Bureau)
Median Household Income: $27,786 (latest estimate by the U.S. Census Bureau)
Percentage Of Vacant Homes: 24.17%
Foreclosure Rate: 1 in every 6,690 (1.4%)
[ Thinking about investing in real estate? Learn how to get started by registering to attend a FREE real estate class offered in your area. ]
2020 Atlantic City Real Estate Investing
The Atlantic City real estate market has set the bar for real estate investing over the last decade. Few cities have successfully combined affordability and high foreclosure rates with unique demand in the way AC has. Despite the relatively low cost of entry for local investors, demand has remained consistent. The thriving gaming industry continues to draw people in from around the country, and investors should benefit.
For years, investors have been able to flip real estate with attractive profit margins. Even today, when most cities across the country have appreciated too much for the likes of rehabbers, Atlantic City still awards patient investors with plenty of flipping opportunities. That said, new fundamentals brought about by the pandemic have shifted many investors' exit strategies.
Atlantic City real estate investors may still enjoy attractive profit margins on flips. However, many investors appear to be trading in the short-term prospects of flips for long-term rentals. Several emerging trends are tilting the scales in favor of landlords, and it's all because of the new landscape created in the wake of the Coronavirus.
The Atlantic City real estate investing community should consider looking into long-term rental properties for three reasons:
Home prices have increased by about 31.2% in as little as three years. The ratios rehabbers prefer are getting harder to come by.
Interest rates are historically low. At 2.94%, interest rates on 30-year fixed-rate mortgages are incredibly affordable and can significantly reduce borrowing costs.
With a price-to-rent ratio of 6.94, it is considerably more affordable to buy a home in the Atlantic City real estate market. Investors who do so intending to rent their property to tenants will find the price-to-rent ratio working in their favor. While it is considerably more affordable to own, the area's low inventory will force many people to rent, driving up both competition and rental asking prices.
Investors are lucky to have several viable exit strategies at their disposal, but none appear more attractive than building a proper rental property portfolio in the wake of the pandemic. Too many important market indicators are pointing towards becoming a buy-and-hold investor to ignore.
2020 Foreclosure Statistics In Atlantic City
Foreclosure activity has eased across the entire country, and the Atlantic City real estate market is no exception. While The Great Recession brought about an influx of new foreclosures between 2008 and 2012, Atlantic City has made drastic improvements in the time since. In the last year, foreclosure filings in Atlantic City have dropped 82.0%, according to RealtyTrac.
For some context, Atlantic City lowered its foreclosure rate slightly more than the national average. As recently as August, 'the number of properties that received a foreclosure filing in the U.S. was 11% higher than the previous month and 81% lower than the same time last year,' according to a foreclosure trends summary presented by RealtyTrac.
After significantly detracting from its foreclosure filings in the last year, Atlantic City now has a foreclosure rate of 1.4%; that means one in every 6,690 homes is either in default, up for auction, or bank owned. The percentage of distressed homes across the United States, on the other hand, is a more modest 0.7%.
The Coronavirus is expected to cause a spike in foreclosures. The unexpected economic downturn will most likely prevent homeowners from paying down their principal. Consequently, more homeowners will find themselves distressed later in the year. Forbearance programs are expected to keep people in their homes for now, but homeowners will be expected to become current on their mortgages sooner or later. When that time comes, those who can't comply may find themselves distressed, and well-positioned investors in Atlantic City may be able to offer a helping hand.
2020 Median Home Prices In Atlantic City
The Atlantic City real estate market has boasted unique price movements in recent history. Whereas the majority of the country has seen steady gains since the market bottomed out in 2012, Atlantic City saw its median home value take a different trajectory. It wasn't until January 2017 that real estate in Atlantic City reached its lowest point of the last decade.
In the first quarter of 2017, Atlantic City's median home value dropped as low as $85,200. Today, the median home value in Atlantic City is $116,711; that means home values have increased an impressive 31.2% in as little as three years. Dating back to July of last year, appreciation rates in Atlantic City have more than doubled the national average—10.4% and 4.1% respectively.
Despite recent progress, home values in Atlantic City are expected to take a short-term hit amid a pandemic. Over 12 months, it's safe to assume values will drop by about 1.4%. Home values have already dropped slightly from their recent highs in March, and they may drop slightly more as the economy struggles to gain some traction during the pandemic.
Local unemployment woes have caused a lot of uncertainty in Atlantic City, and may suppress home values briefly. According to the Bureau of Labor Statistics, Atlantic City's unemployment rate is a very unhealthy 24.0%. In spite of a more than 10.0% improvement over the previous month, AC's unemployment rate is still more than twice the national average.
Fewer people with stable incomes will hurt home values until improvements are made. Unemployment is headed in the right direction, but confidence will remain low until the numbers correct themselves. Therefore, the Atlantic City real estate investing community may view today's home prices as an opportunity. Home prices have increased for three consecutive years, and 2020 appears to offer a discount.
Atlantic City Real Estate Market: 2016 Summary
Atlantic City Economy 2019 Nissan
Median Home Price: $186,400
1-Year Appreciation Rate: -13.1%
3-Year Appreciation Rate: -17.7%
Unemployment Rate: 4.7%
1-Year Job Growth Rate: 2.0%
Population: 39,551
Median Household Income: $50,546
Atlantic City Real Estate Investing 2016
The Atlantic City real estate market experienced a mixture of highs and lows in 2016. The first half of the year generated decent home prices in comparison to the national average, despite home appreciation and total equity gains not living up to expectations. Atlantic City's real estate prices were down from the previous year, but the trend improved in 2016.
Factors influencing the Atlantic City real estate market in 2016 were affordability, new housing construction, and changes in the local economy. Affordability for the Atlantic City housing market was strong during the first-half, with homeowners paying less than historical standards. New housing construction continued to grow relative to the previous year. That said, the local economy recorded subpar numbers in the second quarter.
Appreciation rates remained vastly below the national average, as the second quarter recorded one-year and three-year rates of -13.1% and -17.7%. Price trends in the previous three years added to the post-recession slump the city was already experiencing at the time. Nevertheless, there remained one constant for the Atlantic City real estate market in 2016: investment opportunities. Local affordability and demand meant the Atlantic City real estate investing community had plenty of chances to thrive.
Atlantic City Real Estate Market: 2015 Summary
Median Home Price: $210,000
1-Year Appreciation Rate: -3.3%
Unemployment Rate: 11.3%
Population: 39,551
Median Household Income: $52,127
Atlantic City Real Estate Investing 2015
There is no way around it: the Atlantic City real estate market was one of the worst-hit during The Great Recession. On top of a shrinking economy, the collapse of the casino sector was enough to drive the city into a financial crisis on par with Detroit. However, the gaming industry in Atlantic City was still afloat in 2015, which kept the local housing sector alive.
The median home price was $210,100 at the time; slightly above the national average. As a result, Atlantic City real estate investors saw several deals come their way with attractive spreads. The area's affordability was historically strong in 2015 and continued to improve. Atlantic City homeowners spent about 10.7% of their income on monthly mortgage payments, compared to 15.1% that was the national average.
According to RealtyTrac, there were about 639 foreclosures within the Atlantic City limits in 2015. That is to say, each of these distressed properties was either at risk of being repossessed, already repossessed, or scheduled to be placed up for auction. Regardless of the scenario, these homes became a focal point of the Atlantic City real estate investing community. Distressed properties were a staggering 103.0% higher than the previous year.
The average, non-distressed home in Atlantic City had a median sales price of $66,000. Those of a distressed nature had an average sales price of $59,000. For those keeping track, that was an 11.0% discount at the time or about $7,000 per property.
Atlantic City Economy 2019
Atlantic City County Map:
Atlantic City Real Estate Market Summary
The Atlantic City real estate market wasn't able to enjoy a fast-paced recovery over the last eight years. Whereas most markets across the country saw nearly eight consecutive years of price growth and demand drive healthy fundamentals, real estate in Atlantic City lagged behind the national average. That said, the Atlantic City housing market is very affordable, and the hotel scene still drives plenty of demand. The latest setback initiated by the Coronavirus may represent an opportunity for local investors. The long-term prospects look particularly attractive at the moment, and buying a home today could turn out to be a great move.
Ready to start taking advantage of the current opportunities in the real estate market?
Atlantic City Economy 2019 Jeep
Maybe you have plenty of capital, an extensive real estate network, or great construction skills— but you still aren't sure how to find opportunistic deals. Our new online real estate class, hosted by expert investor Than Merrill, can help you learn how to acquire the best properties and find success in real estate.
Even if the Republicans win the district, Risley said he has no illusions that they will be part of a majority in the Legislature. 'Will be in the minority, no question about it,' he said. 'It doesn't bother me because I'm all about Atlantic County.'
For his part, Mazzeo focused on the district as a whole, and pledged to continue to work for lower property taxes.
Paying less in taxes and for prescription drugs
Mazzeo, 55, a small-business owner who lives in Northfield, said he has made some progress on curbing property taxes since the last Assembly election in 2017 but that more remains to be done. 'Too many seniors and hard-working families in Atlantic County pay too much in property taxes and for prescription drugs,' he said in a statement.
He acknowledged that the district is among about a half-dozen of a statewide total of 40 that will be competitive in the Nov. 5 election but predicted that he and his running mate, Assemblyman John Armato, will prevail.
'My district has been competitive for over a decade and I know that a win is never handed to you in Atlantic County,' he said. 'My district has always been targeted in the past, but I have found a way to win because Atlantic County families know that I am on their side.'
In 2017, Mazzeo and Armato won 28 and 26% of the vote, respectively, some six percentage points ahead of Republicans Vince Sera and Brenda Taube.
Guenther said the GOP would work to overcome the Democrats' advantage of about 16,000 registered voters by working to attract the district's approximately 57,000 unaffiliated voters (more than those registered for either of the main parties), urging high turnout among Republicans and hoping to attract any Democrats who are frustrated by the incumbents' record.
Still, the larger number of registered Democrats may exaggerate the party's advantage because many of them are in Atlantic City where turnout is traditionally low, said Ben Dworkin, director of the Rowan Institute for Public Policy and Citizenship at Rowan University.
Registration not deciding factor
Is Atlantic City Going Out Of Business
'Voter registration doesn't mean as much here,' Dworkin said. 'The Democrats have a clear plurality in terms of voter registration but many of those votes are in Atlantic City which historically doesn't have the kind of turnout that Democrats would always want.'
He noted that the district is one of only two among the state's total of 40 where representation in Trenton is split between the parties; the district's state Senate seat has been held by a Republican, Chris Brown, since 2017.
The GOP candidates see Brown's incumbency, and the fact that he previously served three terms as an assemblyman in LD2, as hopeful signs that they can seize the district from the Democrats.
'The model that we know has been successful already has been Chris Brown's election to the Assembly and the Senate,' Guenther said. 'We believe that the people in the second district understand the issues. Our challenge is to make sure we get that information out.'
Guenther, 61, who was mayor of Brigantine for 25 years until January 2018, said he had been planning to retire but was persuaded to run for the Assembly by GOP officials. He is a former teacher and school principal, and now superintendent of the Atlantic County Vocational and Special Services school districts.
Armato, 71, a retiree from Buena Vista Township, said he will focus on reducing property taxes by working to cut costs and fully fund the state's school-funding formula if elected to a second term.
'Providing property-tax relief is always a priority,' he said in a statement. 'We have made some great strides during the last two years, but New Jersey still needs to fully fund the school-funding formula and focus on shared services to bring property taxes down.'
He played down the possibility that national politics will influence the local race now that President Donald Trump is under threat of impeachment, saying that 2nd District voters are more concerned with local issues.
'President Trump has been at the center of the media's attention for four years but that isn't what people talk to me about at their doors,' he said.
Jump To Another Year In The Atlantic City Real Estate Market:
The Atlantic City real estate market has been hit hard by the current pandemic. Local unemployment appears to have been less insulated from volatility than most of the country. As a result, consumer confidence in the housing sector has been shaken, and now serves as a primary obstacle on the road to recovery. Nonetheless, real estate in Atlantic City has made up a lot of ground since the last recession.
Near-term prospects for the Atlantic City housing market aren't as bright as they were at the beginning of the year. However, the disruption brought about by COVID-19 has created a window of opportunity for patient investors. Emerging fundamentals suggest well-positioned entrepreneurs can take advantage of an attractive rental market. There are now several indicators working heavily in favor of prospective landlords in the Atlantic City real estate market.
Atlantic City Real Estate Market 2020 Overview
Median Home Value: $116,711
1-Year Appreciation Rate: +10.4%
Median Home Value (1-Year Forecast): -1.4%
Median Rent Price: $1,400
Price-To-Rent Ratio: 6.94
Betfair hedging. Unemployment Rate: 24.0% (latest estimate by the Bureau Of Labor Statistics)
Population: 37,743 (latest estimate by the U.S. Census Bureau)
Median Household Income: $27,786 (latest estimate by the U.S. Census Bureau)
Percentage Of Vacant Homes: 24.17%
Foreclosure Rate: 1 in every 6,690 (1.4%)
[ Thinking about investing in real estate? Learn how to get started by registering to attend a FREE real estate class offered in your area. ]
2020 Atlantic City Real Estate Investing
The Atlantic City real estate market has set the bar for real estate investing over the last decade. Few cities have successfully combined affordability and high foreclosure rates with unique demand in the way AC has. Despite the relatively low cost of entry for local investors, demand has remained consistent. The thriving gaming industry continues to draw people in from around the country, and investors should benefit.
For years, investors have been able to flip real estate with attractive profit margins. Even today, when most cities across the country have appreciated too much for the likes of rehabbers, Atlantic City still awards patient investors with plenty of flipping opportunities. That said, new fundamentals brought about by the pandemic have shifted many investors' exit strategies.
Atlantic City real estate investors may still enjoy attractive profit margins on flips. However, many investors appear to be trading in the short-term prospects of flips for long-term rentals. Several emerging trends are tilting the scales in favor of landlords, and it's all because of the new landscape created in the wake of the Coronavirus.
The Atlantic City real estate investing community should consider looking into long-term rental properties for three reasons:
Home prices have increased by about 31.2% in as little as three years. The ratios rehabbers prefer are getting harder to come by.
Interest rates are historically low. At 2.94%, interest rates on 30-year fixed-rate mortgages are incredibly affordable and can significantly reduce borrowing costs.
With a price-to-rent ratio of 6.94, it is considerably more affordable to buy a home in the Atlantic City real estate market. Investors who do so intending to rent their property to tenants will find the price-to-rent ratio working in their favor. While it is considerably more affordable to own, the area's low inventory will force many people to rent, driving up both competition and rental asking prices.
Investors are lucky to have several viable exit strategies at their disposal, but none appear more attractive than building a proper rental property portfolio in the wake of the pandemic. Too many important market indicators are pointing towards becoming a buy-and-hold investor to ignore.
2020 Foreclosure Statistics In Atlantic City
Foreclosure activity has eased across the entire country, and the Atlantic City real estate market is no exception. While The Great Recession brought about an influx of new foreclosures between 2008 and 2012, Atlantic City has made drastic improvements in the time since. In the last year, foreclosure filings in Atlantic City have dropped 82.0%, according to RealtyTrac.
For some context, Atlantic City lowered its foreclosure rate slightly more than the national average. As recently as August, 'the number of properties that received a foreclosure filing in the U.S. was 11% higher than the previous month and 81% lower than the same time last year,' according to a foreclosure trends summary presented by RealtyTrac.
After significantly detracting from its foreclosure filings in the last year, Atlantic City now has a foreclosure rate of 1.4%; that means one in every 6,690 homes is either in default, up for auction, or bank owned. The percentage of distressed homes across the United States, on the other hand, is a more modest 0.7%.
The Coronavirus is expected to cause a spike in foreclosures. The unexpected economic downturn will most likely prevent homeowners from paying down their principal. Consequently, more homeowners will find themselves distressed later in the year. Forbearance programs are expected to keep people in their homes for now, but homeowners will be expected to become current on their mortgages sooner or later. When that time comes, those who can't comply may find themselves distressed, and well-positioned investors in Atlantic City may be able to offer a helping hand.
2020 Median Home Prices In Atlantic City
The Atlantic City real estate market has boasted unique price movements in recent history. Whereas the majority of the country has seen steady gains since the market bottomed out in 2012, Atlantic City saw its median home value take a different trajectory. It wasn't until January 2017 that real estate in Atlantic City reached its lowest point of the last decade.
In the first quarter of 2017, Atlantic City's median home value dropped as low as $85,200. Today, the median home value in Atlantic City is $116,711; that means home values have increased an impressive 31.2% in as little as three years. Dating back to July of last year, appreciation rates in Atlantic City have more than doubled the national average—10.4% and 4.1% respectively.
Despite recent progress, home values in Atlantic City are expected to take a short-term hit amid a pandemic. Over 12 months, it's safe to assume values will drop by about 1.4%. Home values have already dropped slightly from their recent highs in March, and they may drop slightly more as the economy struggles to gain some traction during the pandemic.
Local unemployment woes have caused a lot of uncertainty in Atlantic City, and may suppress home values briefly. According to the Bureau of Labor Statistics, Atlantic City's unemployment rate is a very unhealthy 24.0%. In spite of a more than 10.0% improvement over the previous month, AC's unemployment rate is still more than twice the national average.
Fewer people with stable incomes will hurt home values until improvements are made. Unemployment is headed in the right direction, but confidence will remain low until the numbers correct themselves. Therefore, the Atlantic City real estate investing community may view today's home prices as an opportunity. Home prices have increased for three consecutive years, and 2020 appears to offer a discount.
Atlantic City Real Estate Market: 2016 Summary
Atlantic City Economy 2019 Nissan
Median Home Price: $186,400
1-Year Appreciation Rate: -13.1%
3-Year Appreciation Rate: -17.7%
Unemployment Rate: 4.7%
1-Year Job Growth Rate: 2.0%
Population: 39,551
Median Household Income: $50,546
Atlantic City Real Estate Investing 2016
The Atlantic City real estate market experienced a mixture of highs and lows in 2016. The first half of the year generated decent home prices in comparison to the national average, despite home appreciation and total equity gains not living up to expectations. Atlantic City's real estate prices were down from the previous year, but the trend improved in 2016.
Factors influencing the Atlantic City real estate market in 2016 were affordability, new housing construction, and changes in the local economy. Affordability for the Atlantic City housing market was strong during the first-half, with homeowners paying less than historical standards. New housing construction continued to grow relative to the previous year. That said, the local economy recorded subpar numbers in the second quarter.
Appreciation rates remained vastly below the national average, as the second quarter recorded one-year and three-year rates of -13.1% and -17.7%. Price trends in the previous three years added to the post-recession slump the city was already experiencing at the time. Nevertheless, there remained one constant for the Atlantic City real estate market in 2016: investment opportunities. Local affordability and demand meant the Atlantic City real estate investing community had plenty of chances to thrive.
Atlantic City Real Estate Market: 2015 Summary
Median Home Price: $210,000
1-Year Appreciation Rate: -3.3%
Unemployment Rate: 11.3%
Population: 39,551
Median Household Income: $52,127
Atlantic City Real Estate Investing 2015
There is no way around it: the Atlantic City real estate market was one of the worst-hit during The Great Recession. On top of a shrinking economy, the collapse of the casino sector was enough to drive the city into a financial crisis on par with Detroit. However, the gaming industry in Atlantic City was still afloat in 2015, which kept the local housing sector alive.
The median home price was $210,100 at the time; slightly above the national average. As a result, Atlantic City real estate investors saw several deals come their way with attractive spreads. The area's affordability was historically strong in 2015 and continued to improve. Atlantic City homeowners spent about 10.7% of their income on monthly mortgage payments, compared to 15.1% that was the national average.
According to RealtyTrac, there were about 639 foreclosures within the Atlantic City limits in 2015. That is to say, each of these distressed properties was either at risk of being repossessed, already repossessed, or scheduled to be placed up for auction. Regardless of the scenario, these homes became a focal point of the Atlantic City real estate investing community. Distressed properties were a staggering 103.0% higher than the previous year.
The average, non-distressed home in Atlantic City had a median sales price of $66,000. Those of a distressed nature had an average sales price of $59,000. For those keeping track, that was an 11.0% discount at the time or about $7,000 per property.
Atlantic City Economy 2019
Atlantic City County Map:
Atlantic City Real Estate Market Summary
The Atlantic City real estate market wasn't able to enjoy a fast-paced recovery over the last eight years. Whereas most markets across the country saw nearly eight consecutive years of price growth and demand drive healthy fundamentals, real estate in Atlantic City lagged behind the national average. That said, the Atlantic City housing market is very affordable, and the hotel scene still drives plenty of demand. The latest setback initiated by the Coronavirus may represent an opportunity for local investors. The long-term prospects look particularly attractive at the moment, and buying a home today could turn out to be a great move.
Ready to start taking advantage of the current opportunities in the real estate market?
Atlantic City Economy 2019 Jeep
Maybe you have plenty of capital, an extensive real estate network, or great construction skills— but you still aren't sure how to find opportunistic deals. Our new online real estate class, hosted by expert investor Than Merrill, can help you learn how to acquire the best properties and find success in real estate.
Atlantic City Economy 2019 2020
Atlantic City Economy 2019 News
