New Jersey, like the rest of the country, has been hit hard bythe economic downturn. According to Dr. James Hughes, Dean of theEdward J. Bloustein School of Planning and Public Policy, the statehas lost more than 9,000 private sector jobs in the first fivemonths of 2008. In addition, lenders across the country aretightening their purse strings, and Hughes said it's likely thecountry as a whole will continue to see recessionary or nearrecessionary conditions.

While this is bad news for consumers and borrows, it's good newsfor those who own multifamily rental properties. Hughes' researchhas found that home ownership in the state has dropped from its2005 high of 70% to 68.3%, and he expects it to drop further tojust under 65%.

Many people are joining the rental pool because New Jersey'shigh housing costs--housing in the state costs 52% more than thenational average--and high property taxes combine to make rentingan attractive prospect, especially in the current economic climate,in which homes are not appreciating in value as much as they usedto. So says David Barry, president of Applied Development, whospoke in this session.