What Drives the Franklin Lakes Real Estate Market

Interest Rates Sales and Prices From 2021 Through 2026

The obvious answer is the economy and the past five years in Franklin Lakes is proof! Many factors have contributed to the overall market including lack of inventory (resulting in sellers waiting), work from home as a result of COVID, multi-generational living and other personal reasons BUT interest rates are the single biggest influence on housing activity, affecting affordability, purchasing power and the timing of a move.

The numbers tell the story. In 2021, when the average mortgage rate was 3.15 percent, 171 single-family homes sold in Franklin Lakes. As rates rose, sales slowed: 153 homes sold in 2022, 105 in 2023 and just 78 in 2024. Activity improved in 2025, with 102 sales, and 83 homes had sold in 2026 as of September 17.

Franklin Lakes sales activity and mortgage rates

Note: 2026 sales are year to date through September 17; the rate shown is the supplied 2026 range.

Consumer confidence also plays a role. Higher gas and energy costs, geopolitical tensions and broader economic uncertainty can make buyers and sellers more cautious. At the same time, much of New Jersey’s recent residential construction has been concentrated in rentals. Rising housing costs have helped push the national median age of first-time buyers to 40, according to the National Association of Realtors. Some younger buyers are choosing to rent close to work and amenities, while others are purchasing a vacation home before a primary residence.

Prices Continue to Rise

Sales volume has declined from the unusually active 2021 market, but prices have generally moved in the opposite direction. Limited inventory continues to create competition for desirable homes, even as some would-be buyers remain sidelined by affordability constraints or lose out in multiple-offer situations.

Franklin Lakes sale prices

Note: 2026 prices are year to date through September 17.

From 2021 through September 17, 2026, the average sale price increased from $1.37 million to $2.101 million, while the median rose from $1.2 million to $1.75 million. The slight dip in the 2024 average did not alter the broader upward trend.

What Could 2027 Bring?

Interest rates might remain at near or above 7%. Despite the rates, prices continue to increase because of the inventory shortage and the desire of many buyers to be in great communities. Franklin Lakes offers many of the qualities buyers continue to seek: highly regarded schools, strong recreational programs, spacious properties and convenient access to New York City and major highways. Those fundamentals help the community remain desirable even when financing becomes more expensive.

The biggest question is when inventory will loosen. Much of that answer depends on lifestyle decisions, particularly among baby boomers who may be weighing whether to downsize, relocate or remain in their homes. Meanwhile, Gen X, millennial and Gen Z buyers continue to wait for opportunities to enter Franklin Lakes and the broader Bergen County market.

Homes will continue to come to market, and well-priced properties in strong condition are likely to attract attention quickly. That does not mean every home will sell immediately or at any price; presentation, condition and realistic pricing remain essential.

Many areas in the country including parts of Florida (Tampa and Orlando), Charlotte, NC, Minneapolis and others have inventory that exceeds the buyer pool and are suffering double digit drops in prices and sales in many neighborhoods. But Franklin Lakes operates under a different mix of supply, demand and local amenities. The most important lesson learned from this is also the simplest: real estate is local!

For more information, please contact the Franklin Lakes office at 834 Franklin Lake Road or feel free to text/call me at 201-314-4922.  All data from the NJMLS and the National Association of Realtors.

Charlie Oppler served as President of the National Association of REALTORS® in 2021 and is CEO of Prominent Properties Sotheby’s International Realty. This article was prepared using information from the 21st Century ROAD to Housing Act, the National Association of REALTORS®, Congress.gov and published reports.