About all those multifamily housing starts in Jersey City and along the Gold Coast … soaring rents show just how much they are needed.
According to the end-of-the-year National Rent Report by Zumper, rents in Jersey City increased nearly 50% in 2022, thanks to a shortage of units in New York City.
The reason is simple: The Zumper report showed that New York City is so woefully undersupplied that 44.4% of NYC-based respondents submitted five or more applications before signing a lease. Here the impact in New Jersey:
- Jersey City: Average monthly rent for a 1-bedroom was $3,035, a year-to-year increase of 52%;
- West New York: $2,360 per month, Y2Y increase of 47.5%;
- Union City: $1,800 per month, Y2Y increase of 28.6%;
- Newark: $1,400 per month, Y2Y increase of 5.9%.
That, of course, is if you can find a place.
Another report, by RentCafe, showed that efforts by renters in northern New Jersey was just as tough. Consider:
- Occupancy rate:2%;
- Renewal rate:3%;
- Availability: One available unit for every 21 prospective renters;
- Time on market: The average apartment stayed on the market just 32 days.
RentCafe said these numbers come despite the fact that there was an increase of 2.1% in the total number of new apartments in North Jersey — the sixth-largest growth in supply nationwide.