Northern New Jersey Multifamily Market Report
More-Affordable and Less-Confining Rentals to Drive Partial Recovery Across Most of Region
Hudson rentals face challenges this year. The negative impact of the health crisis on the region’s multifamily sector has been most apparent in Hudson County. The high-rise, high-rent nature of the apartments in this area have hurt their appeal during the pandemic-driven economic downturn. Of the six counties that comprise the market, Hudson was the only one to record the negative net absorption of rentals last year. The recovery in 2021 will be largely dependent on the behavior of currently untethered employees. These remote-working professionals will be more likely to return to urban core apartments if their daily commutes to Hudson- or Manhattan-based offices resume in force. Even if this aspect of renter demand fully recovers, new supply will weigh on fundamentals in the short term as over 3,000 units are slated to open in the county this year.