Northern New Jersey Multifamily Market Report
Recovering Demand Stabilizes Vacancy;
New Supply Challenges Hudson County
Suburban residential interests drive market performance. After a period of uncertainty in the spring and summer of last year, renter demand has since consistently improved. Apartments in the region’s suburban communities have performed particularly well. As of mid-2021, vacancy in Union, Morris and Passaic counties had fallen below pre-pandemic levels, to 3.2 percent, 3.8 percent and 2.3 percent, respectively. Most of the availability in Passaic County is from the Class A segment, with Class B and C vacancies under 2 percent. The dynamic is somewhat different in Morris County. High demand for the Class A units at hand has pushed vacancy below the Class B measure, while contributing to annual Class A rent growth of over 10 percent.