The rental market in northern New Jersey has been increasingly competitive and unbalanced between supply and demand. Not only are the rents high, but behind each available rental property, there are numerous potential tenants competing, leading to escalating market pressures.
According to a report by RentCafe as reported by northjersey, by early 2024, the rental market competitiveness in the North Jersey region ranked third nationwide. Florida’s Dade County and Milwaukee ranked first and second respectively.
The North Jersey region in the report includes Bergen County, Passaic County, Morris County, Essex County, Sussex County, Hudson County, and Union County, where it remains one of the most popular rental markets in the Northeast.
Especially in areas like Jersey City, Hoboken, and Union City, which face Manhattan across the river, the Rental Market Competitiveness Composite Index reaches a high score of 85.4, meaning there are as many as nine potential renters vying for each available rental unit. This high level of competition exists in other areas like Newark, Lyndhurst, and Orange as well. The percentage of newly constructed apartments in the region accounts for only 0.51% of all rental units, highlighting the severe imbalance between supply and demand.
According to another RentCafe report, Newark and Jersey City rank third and tenth respectively in rental market competition in the Northeast. Newark and Jersey City offer the PATH train system directly to Manhattan, making them popular rental locations due to their geographical proximity and convenient transportation for commuters to easily access Manhattan for work and take advantage of the abundant job opportunities there.
In addition, cities along the PATH line, such as Jersey City, Hoboken, and Union City, have become popular choices for Chinese international students studying in Manhattan. Compared to the high costs of living in Manhattan, New Jersey offers a more diverse housing selection, further driving up the local rental market.
RentCafe rankings are based on four indicators: apartment availability, website traffic, apartment collections, and saved searches. RentCafe compared data from March 2024 for 150 major U.S. cities to data from March 2023.
Newark is ranked 46th nationally with a score of 63. Compared to last year, apartment availability decreased by 18% but still ranks 9th nationally. Website traffic increased by 98% from last year, indicating high market interest, ranking 60th among the 150 cities. Collections rank 133rd, and saved searches rank 146th.
Jersey City’s situation is similar, ranking 125th nationally with a score of 49. Apartment availability ranks 79th, a 7% increase from last year. Website traffic ranks 127th, collections rank 59th, and saved searches rank 120th.
The report highlights other popular rental markets in the Northeastern United States including Queens in New York (1st), Philadelphia (2nd), Buffalo, New York (4th), Providence, Rhode Island (5th), Manhattan in New York City (6th), Boston (7th), Pittsburgh (8th), and Monroe County, New York (9th).
Although the rental market in North New Jersey has slightly cooled compared to the same period last year, its level of competition remains significantly higher than other regions nationwide, with the entire rental market in the Northeastern U.S. still very active. For those looking for rental properties, this means being prepared to face intense competition.