Paterson, NJ real estate: the numbers, explained.

Home values in Paterson

Zillow Home Value Index (all homes, middle tier, smoothed, seasonally adjusted) for the Zillow region “Paterson”, September 30 of each year. Source: Zillow Research.

Zillow’s Home Value Index for Paterson was $540,919 as of September 30, 2026, up 5% from a year earlier and up 38.2% over five years. Over ten years the index rose 147.3%. ZHVI models a typical home value. It isn’t the price of any specific house.

The NJ Division of Taxation’s 2026 Average Residential Statistics show an average residential sale price of $580,376 across 207 sales used in that report. Averages can be pulled up or down by a few sales, which is one reason it can differ from Zillow’s index.

The Census Bureau’s survey puts the median value of owner-occupied homes, as estimated by owners, at $360,100 (2020–2024 average), compared with a Passaic County town median of $446,100.

Paterson property taxes

Paterson’s 2025 general tax rate was 5.335 per $100 of assessed value, and its effective tax rate was 2.421%, about the same as the Passaic County town median of 2.369% and higher than the statewide municipal median of 2.141%. That ranks it #9 lowest of 16 Passaic County municipalities by effective rate. The average residential tax bill was $10,358 on an average assessment of $194,143 across 18,460 residential properties.

Applied to the typical home value of $540,919, the effective rate implies roughly $13,096 a year ($1,091 a month) in property tax. The Division publishes the effective rate for comparing towns, not for computing a specific bill, so use it as a ballpark.

What it costs to own vs. rent

For a $540,919 home with 20% down ($108,184) and a 30-year fixed loan at 7.18%, Freddie Mac’s national average for the week of November 5, 2026, principal and interest come to about $2,931 a month. With estimated property tax that’s about $4,023, before insurance, any HOA fee and utilities. For comparison, the Census median gross rent in Paterson is $1,548 and Zillow’s observed rent index (asking rents, Sept. 2026) is $1,889, up 0.6% in a year.

Run my numbers for PatersonRent vs buy here

Who lives in Paterson

About 158,735 people live in Paterson. 26.9% of occupied homes are owner-occupied (county town median 71.2%), so renters are a large part of the market and rentals turn over often. 15.9% of housing units are single-family detached houses. The median resident age is 33.3, and 11.8% of adults 25 and older hold a bachelor’s degree or higher. Median household income is $55,997, lower than the county town median of $113,369.

The median home in Paterson was built in 1954. Much of the housing predates 1978, so buyers should plan for older-home checks: lead-based paint disclosure, an oil-tank sweep if the house ever had oil heat, knob-and-tube or older electrical, galvanized plumbing, and a sewer-line scope. See the NJ inspection checklist.

Commuting from Paterson

Workers in Paterson average 22.6 minutes each way (those who don’t work from home), shorter than the Passaic County town median of 27.0 minutes. 7.4% commute by public transportation, so transit is a real option for some commuters and 5.2% work from home.

Schools

I don’t republish unofficial school scores. For Paterson, start with the New Jersey Department of Education’s School Performance Reports, then confirm the exact school assignment for any address with the district, since some NJ towns send students to regional or neighboring high schools. See how to research NJ schools.

Downtown, food and things to do

The best way to judge Paterson’s restaurants, parks and weekend life is in person. Visit on a weeknight and a Saturday morning, check the town recreation calendar and walk the blocks you’d live on. My town scouting checklist shows what to look for.

My take for buyers, sellers and renters

• Renters: with 73.1% of homes renter-occupied, Paterson has a deep rental market. Line up documents before touring. The move-in calculator shows the cash you’ll need.
• Buyers: taxes run above the county median, so budget on the tax bill, not just the price. Ask for the current bill on every listing.
• Sellers: values are up 38.2% in five years, so many owners have significant equity. See your number in the seller net sheet.

Nearby towns at a similar price