Ocean City Banking CEO Calls Shore Housing Market "Very Healthy"

In a presentation to the Ocean City Chamber of Commerce, the president and CEO of Sturdy Savings Bank highlighted an improvement in the 2024 economy from recent years and made optimistic predictions for a prosperous 2025.   

“I think the overall market here in Ocean City is very healthy,” Greg Matuson said, referring to the housing market. “Prices are stable. They're elevated, but they're not declining.”  

Matuson presented an economic forecast for the Ocean City area to local business owners, discussing the housing market, job market, wages and state of the national economy.  

This year, Matuson predicts that housing prices will remain elevated, and mortgage rates will continue to increase, which is in alignment with recent years.  

“I don't think housing prices are going to go up 10 percent, but I don't think they're really going to go down in a meaningful way,” he told a roomful of business owners Thursday at the Flanders Hotel. “I think plus or minus 5 percent is where we're at for housing.”  

Matuson said he believes gas prices and inflation rates will decrease, and the stock market and businesses will thrive under Donald Trump’s presidency.  

“I think most of the policies with the new administration are pro-business, and most businesses are likely to develop in that environment,” he said.  

    Cape May County's housing market is dotted with upscale homes like this bayfront house under construction in Ocean City.
  

Matuson said in 2024, the population and number of jobs in New Jersey both grew from 2023. However, the state minimum wage has increased to $15.49 per hour, making it the sixth highest in the U.S., which Matuson said could be negatively impacting small businesses. He said the minimum wage has increased as a direct result of inflation.   

He also noted that across Cape May County, prices of homes were up in 2024 compared to previous years and 2023, while the volume of listings is up from 2023, yet still down for the past 15 years.  

“After some slowness in 2023, the real estate market really returned to a more normal level in 2024,” he said. “You’ll see an increase in the number of new units, single-family homes, duplexes and the number of demolitions.”  

He explained that the increasingly high prices and still-limited number of homes for sale are currently a major issue for people looking to buy homes in the area.  

“Affordability is an absolute problem in Cape May County, period,” he said. “In particular, the lack of availability of homes in the $250,000 to $300,000 range, which could be a starter home for most young couples making a good living.”  

He also pointed out that since 2020, buying homes with cash has been a steady phenomenon, making the market more limited and challenging for those looking to take out a mortgage. Matuson stated that buying a home in New Jersey in today’s market is typically 35 percent more expensive than renting.  

    The Chamber of Commerce audience listens to the presentation at the Flanders Hotel.
  

In his presentation, he also reported that enrollment at the Ocean City School District was stable again in 2024, after declining from 2020-2023.  

Matuson also mentioned that the casinos in Atlantic City are important to the local economy, providing both jobs and tourism.   

He said the casinos have benefited from an increase in online gambling popularity in recent years, and raked in nearly $5.7 billion in revenue in 2024, which was up from $5.2 billion in 2023.

Matuson, though, said he is worried about the beaches in Atlantic City, and believes the north end is in desperate need of beach replenishment to maintain tourism.  

His presentation left Chamber of Commerce members feeling happy about the economy’s improvements in 2024, and excited for 2025.