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Market Report

Northern New Jersey Multifamily Market Report

2Q 2024

Hudson-Bound New Supply Warranted Long-Term,
While Vacancy Stays Low Inland

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. Occupancy is also being anchored by Class C properties, helping the segment reach the fastest annual rent growth in March. Class C vacancy rose 40 basis points to 3.0 percent, while Class A and B had triple-digit upticks. 
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