Market Report
Northern New Jersey Multifamily Market Report
1Q 2026
Investors Navigate Diverging Vacancy
Trends and Rising Regulatory Headwinds
Submarket performance splits as urban deliveries rise. Vacancy trends varied across Northern New Jersey in late 2025. 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, Essex, and Bergen counties, however, will reduce competition for existing rentals. While recent hiring softness in traditionally office-using sectors may slow demand for higher-end units, a nearly decade-high Class A retention rate should help sustain occupancy. Less new supply competition 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, closing out last year at under 3 percent, keeping these properties well positioned.
TO READ THE FULL ARTICLE
