By Yael Tangir, Business Editor
Housing prices are rising across some of the fastest-growing cities in America: New York, Miami, Austin and Los Angeles. At first glance, the rise seems typical: more demand, fewer homes and rising interest rates. But look closer and you’ll see something fascinating: many of these cities are also home to thriving Jewish communities. From the long-established neighborhoods of Brooklyn and Teaneck to newer hubs like Boca Raton and Phoenix, Jewish families are driving up demand and reshaping the housing market.
A Surge in Demand: Jewish Communities on the Rise
Jewish populations in major metropolitan areas have been growing rapidly, fueling an increased demand for housing. According to the 2023 Jewish Community Study of New York by the UJA Federation, New York alone is home to over 1.3 million Jewish adults and children, with Brooklyn accounting for nearly a third of this population. Home prices have also surged over the past decade in Teaneck, New Jersey, a prominent Modern Orthodox community. As of February 2025, the median home list price in Teaneck was $627,000, up 22.9% from the previous year.
This spike reflects not only rising costs but also a tightening housing supply – demand continues to outpace availability, making it increasingly difficult for families to find homes in the area. Similar patterns may be seen in places like Miami, where a large number of Orthodox Jewish families have relocated, driving up home values in Surfside, Bal Harbour and North Miami Beach while further straining the limited housing inventory.
What makes these areas so appealing to the Orthodox Jewish population? It’s simple: The proximity to synagogues, kosher markets and Jewish institutions makes living convenient and accessible for orthodox Jews. The cultural and communal structure of these neighborhoods are an essential part of community growth, but at the same time, they lead to intense competition for limited housing options. This demand has pushed prices to record highs, creating affordability challenges even for upper-middle-class families.
Inflation, Interest Rates and Housing Costs
The affordability dilemma in Jewish communities has been made worse by the current economic climate. Homeownership has become more costly nationwide due to inflation and rising interest rates, although this effect is most noticeable in places with high demand. It is now more difficult for new purchasers to enter the market because mortgage rates, which were at historic lows in the early 2020s, have substantially increased. This change has been mostly attributed to the Federal Reserve’s monetary policies, with interest rates as of early 2024 still sitting above 6.5%.
Moreover, inflation has increased the cost of construction and home renovation, further inflating property values. In Los Angeles, Jewish communities such as Pico-Robertson and Hancock Park have experienced dramatic price increases, and comparable patterns can be seen in the Five Towns of Long Island. This means that for many younger families, they will not be able to remain in the neighborhoods where they grew up.
The development of real estate is greatly influenced by these Jewish communities. Formerly impoverished areas have become upscale real estate markets as affluent Jewish families look for bigger homes and more amenities. But there are problems with this boom. As wealthier buyers move into Brooklyn, long-time Jewish residents are being priced out. Due to increasing birth rates and a shortage of available homes, housing costs have skyrocketed in Borough Park, a historically Haredi area. A rapid population increase has sparked zoning disputes and land development discussions in Lakewood, New Jersey, a municipality with a large and ever-growing Yeshivish community.
The main question is: Is this real estate boom sustainable? Many young Jewish families find it difficult to purchase housing in the towns where they grew up. As a result, new Jewish communities have emerged in places like Phoenix, Houston and Atlanta, where real estate is still reasonably priced in comparison to more established Jewish communities. As patterns have shown, affordability doesn’t last forever.
As these cities attract more Jewish families, they’ll inevitably see a rise in demand for homes, schools, synagogues and kosher markets, clearing the way for higher property values. What started as an escape from skyrocketing prices in places like New York and Los Angeles may create the very same housing challenges in these new communities. The question is not just where the next Jewish communities will emerge, but how long they’ll remain the “affordable” alternative before the cycle begins again.