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Market Report

Northern New Jersey Multifamily Market Report

2025 Investment Forecast

Apartment Deliveries and Population Growth Moderate,
Translating into Supply-Demand Balance

Property performance improves as white-collar woes begin to subside. 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 growth 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 traditional office-using hiring, which should aid leasing at newly-built apartment complexes. Expectations for positive job creation in the warehousing, transportation and retail trade sectors, meanwhile, will continue to support a strong level of demand for Class C units throughout the metro. These trends should continue to bolster renter demand, generating net absorption greater than 8,000 units for the sixth time in nine years. This, coupled with a moderation in supply additions, should translate into a slight decrease in the metro’s vacancy rate.
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