Northern New Jersey Multifamily Market Report

Supply additions rapidly accelerate. Northern New Jersey proved resilient last year when it was the only major Northeast metro to record vacancy contraction. That strength, however, encouraged developers to ramp up activity, creating a near-term supply pace that is surpassing normalizing apartment demand. The 4,400 units completed from April through June 2023 marked the largest addition in 23 quarters. Even amid healthy absorption levels, that activity increased the market’s total vacant stock by 1,900 units during those three months. The forward-looking pipeline is substantial as well, with about 5,800 units expected to finalize during the second half of 2023 and almost five times that amount underway with scheduled completion dates extending into 2026. Vacancy entered the year at a historically tight figure, providing some breathing room; however, performance metrics will continue to soften in the coming quarters.