Northern New Jersey Multifamily Market Report

Urban supply wave masks broader leasing strength. Vacancy across Northern New Jersey began to diverge in late 2025 amid shifting development patterns. Heavy deliveries in Jersey City lifted rates in Hudson County while conditions largely tightened elsewhere. More than 4,000 additional units are slated to deliver in Jersey City in 2026, likely keeping upward pressure on vacancy. A shrinking pipeline in Union, West Essex, and Bergen counties, however, will reduce competition for existing rentals. While recent hiring softness in traditionally office-using sectors may slow new demand for higher-end units, a nearly decade-high Class A retention rate should help sustain occupancy. Less competition from new supply and steady job gains in middle-income sectors, such as education and health care, are also expected to reinforce Class B property performance. In contrast, weaker hiring in lower-wage sectors and rising household budget strain could weigh more heavily on lower-tier apartment leasing. Nevertheless, Class C vacancy across the metro remained the fifth tightest nationally, ending last year at under 3 percent.