How has the New Jersey housing market changed over the past decade? That’s the main question posed in a new case study by the RENTCafe blog, the national apartment search website based in Santa Barbara, California.
Entitled “The Decade in Housing Trends: Grown-Up Millennials, High-Earning Renters and High-End Apartments,” the study reveals the 15 most important housing trends in the Garden State between 2010 and 2019. What stands out, according to the study, is the relationship between the housing market and the country, particularly in terms of the rental market. “While the recession pushed many to rent out of necessity, the economic expansion which followed, coupled with changing attitudes towards family and homeownership, led to the rise of the renter by choice. Rentership rates expanded across the board–from young families to seniors, from city cores to suburbs, many Americans have shifted away from homeownership.”
What did this mean for developers? Well, construction skyrocketed. The number of housing units built over the past ten years nationwide was higher than anything seen over the last 30 years. This “includes a growing number of high-end units. Meanwhile, apartment buildings themselves have become increasingly sophisticated to accommodate quality-seeking lifestyle renters.”
For the past decade, RENTCafe’s researchers continually analyzed the trends in the housing market across the United States. This report documents the trends which were found and how New Jersey figures into those findings.
So, what are the main findings for New Jersey? Let’s take a look:
*3 cities are on the top of the list of nationwide cities having the highest share of renters…Newark, Elizabeth and Jersey City. The Brick City is third with a 75% renter-majority population. Elizabeth is next at 73%, while Jersey City comes in sixth with 67% of its population renting apartments.
*The number of wealthy renters in Jersey City has doubled in the past ten years. In 2010, 9% of total renter households were earning annual salaries of $150,000. Today that figure stands at 18%.
*Despite the fact that Newark apartments are larger now they were a decade ago, the city still has some of the smaller units per square foot in the country. Newark is second to Seattle, Washington in average apartment size at 706 Sq.Ft., as compared with 694 SqFt. in 2010.
*Edison, New Jersey saw the largest increase in single-family renter units over the last decade — 41%. In contrast, Edison dropped 8% in the number of multi-family units over the same period.
*Of the 125,000 new apartment units in the Metro New York region during the past decade, 14,000 were constructed in Jersey City. That represents 11% of the total number of housing units built in Metro New York during the 2010s.
*Here’s a surprising figure: Jersey City ends the decade as one of our country’s youngest cities. Nearly 39% of its population is comprised of millennials. A decade ago the study found that most of the millennials were living in college towns. In 2019, these individuals have relocated into more vibrant, bustling communities with affordable rates as they look for employment opportunities.
To get a complete sense of how the housing and rental market has changed both in New Jersey and the country, you can view the entire study and its findings at www.rentcafe.com.