Just the Peaks

This newsletter at a glance

  • A recent RentCafe report shocked the multifamily investment community

  • New Jersey ranked as the #1 most competitive rental market in the U.S.

  • Everest celebrates this incredible milestone with exciting updates for 2023

Move over, Florida—there’s a new multifamily hotspot in town!

With Northern NJ smashing records, the time to invest is now.

 

Ever wonder which state has the greatest multifamily demand?

Demographic trends are always changing, but for many decades, warmer locations in the American South and West dominated the charts. People looking for sunny skies and fresh opportunities were drawn to states like California, Texas, Florida, and South Carolina.

Then, things were rocked by a little thing called Covid.

During the pandemic, cities in the Deep South continued to flourish, while strict lockdowns on the West Coast caused people to flee. It was only recently that rental markets saw a dramatic shift away from these multifamily mainstays—and you won’t believe where people are moving!

Return of the Garden State

 

In a recent RentCafe report measuring multifamily demand, Northern New Jersey was named the #1 hottest spot for renters nationwide. Places like Hoboken, Jersey City, East Orange, Newark, and Hackensack surged ahead of virtually every other rental market—even beating out Manhattan, Brooklyn, and other perpetual chart-toppers.

Analysts examined factors such as days on market, occupancy percentage, number of renter applications, completed new housing, and more.

Besides New Jersey’s domination of nearby New York City, the state’s Northern market is also ranking more competitively than locations in the South, beating out Florida’s Miami-Dade County for the #1 spot.

“Business-friendly Sunbelt states have long been highly desirable rental locations, especially during the pandemic,” says RentCafe. “At the beginning of 2023, however, there was a shift to the markets in the Northeast…North Jersey is the most competitive rental market in the US.”

Clearly, this is great news for our local multifamily investors.

Whether you’ve been sitting on a deal, considering new construction, or wanting to start a conversion project, there’s never been a better time to cross the river. In particular, city suburbs in Bergen, Essex, Passaic, and Hudson counties are currently sitting at #1 on the charts.

Check out these impressive stats.

Northern NJ Rental Demand

The Rise in Numbers

  • In the first quarter of 2023, 8 of the country’s top 20 trending rental markets were located in the Northeast.

  • Over the past year, cities like Hoboken and Jersey City measured twice as competitive as Manhattan.

  • Housing demand has driven occupancy in Northern New Jersey to almost 97%, with 72% of tenants choosing to renew their leases.

  • At the start of 2023, RentCafe’s average Rental Competitivity Index (RCI) across the U.S. was 60. Northern New Jersey ranked at 67.

  • On average, North Jersey landlords saw 34 vacant days, 12 prospective renters per unit, and a healthy 72% lease renewal rate.

Stats reported by RentCafe 

So, what’s in the water?

Take away the infamous malls, diners, jug handles, and gas attendants, and you’re left with a simple reason why people are flocking to Northern New Jersey: convenience.

This area of the country has always been sought after for its proximity to Manhattan. And with interest rates remaining high, rental markets have become increasingly aggressive.

“Aspiring homebuyers continue to rent in North Jersey while enjoying a relatively affordable cost of living in the area compared to New York City,” writes Morgan McCarthy of New Jersey Local Today. “This, in turn, allows renters to save more money in case the housing market cools so they can buy a home.”

High interest rates, coupled with a severe housing shortage, gives commercial investors a (perhaps) once-in-a-lifetime advantage. If you’re thinking of jumping on the Jersey bandwagon, Everest has all the hookups. We may call New York home, but we love our backyard too.

For perspective, rents in Jersey City increased nearly 50% in 2022 with 1-bedroom units commanding $3,035 a month. Places like West New York, Union City, and Newark saw similar jumps. With numbers so good, the future of multifamily investment is clear.   

We’ll see you on the Jersey side!

Everest says: It’s a great view from the top

Everest Equity

Serving North Jersey since 2004

From single-family homes to large commercial investments,

the Northeast is our specialty. Let’s talk numbers today!