Northern New Jersey Multifamily Market Report

Fundamentals surpass long-term benchmarks. The delivery of 2,700 apartments in the first quarter puts the market on track to welcome 13,400 units this year, just shy of the record set in 2017. This robust supply growth will push the vacancy rate above 4.9 percent for the first time since early 2021. However, demand drivers should help hold the rate below the 2020 high, as net absorption is set to exceed the decade mean this year, with strong momentum in Bergen, Essex, and Union counties. Metrowide Class A vacancy has nevertheless struggled compared to the Class C segment. The luxury apartment rate increased to 7.6 percent in March, compared to 3.0 percent for Class C. However, Class A units have fared better in certain parts of the metro. Bergen County reported a 760-basis-point drop from 2023.