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Market Report

Northern New Jersey Multifamily Market Report

2025 Investment Forecast

Supply-Demand Balance Surfacing Amid
Anticipated Delivery Pullback

Property performance improves as white-collar woes ease. Apartment openings in 2025 will drop below 10,000 units for the first time in six years, ending Northern New Jersey’s eight-year reign as the most active major Northeast market by inventory growth rate. Developers appear to be responding to a slowdown in local population expansion that will extend through this year. Still, tailwinds for apartment demand are present. Approximately one-third of this year’s job gains are projected to stem from traditionally office-using employers, which should aid leasing at newly built apartment complexes. Additionally, areas close to New York City via public transit may attract renters looking for lower monthly payments and no car congestion fee. Hiring in the transportation, trade and utilities segment, meanwhile, will continue to support renter demand for lower-tier apartments across the market. Class C vacancy has held below 3 percent for four consecutive years, with the sector poised to remain tight over the near term. This trend may also create some spillover demand for Class B units.

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