LONG VALLEY, NJ–For more than a decade, two New Jersey counties —Hudson and Ocean—have generally led the state in new residential construction, and after the recession they were the first to rebound, according to the latest report by Marketlogics, an independent market research firm which specializes in property development research. Hudson County ranked first in multifamily permits and Ocean County led in single-family permits, the firm says.

Rising building permits are a good measure of the health of the construction industry, says Michael A. Kehl, president of Marketlogics.

By year-end 2014, homebuilders obtained 5,641 permits for multifamily projects in Hudson County, reaching a record high.

Hudson County's increase was led by Jersey City's multifamily building boom, which outpaced the other towns in the study – Hoboken, Harrison, Secaucus, Weehawken, West New York and Bayonne.

“In 2015, January's numbers were still strong for Hudson and Ocean Counties with a sharp increase in single-family permits in Jersey City,” says Kehl.

“Housing has always been the biggest driver of the economy. When housing increases, so does the rest of the economy,” says Kehl. “Since the recession of 2008, housing has yet to fully return to normal levels. Once it comes back, we'll see the economy experience an even greater rebound.”

Whether the economy will generate the jobs needed to sell or rent the units being built in Hudson and Ocean Counties remains unclear, Kehl says.

“Many, but not all, of those jobs are New York City-based. Over 24 percent of Hudson County workers commute to the city. They choose to live across the river in New Jersey where the cost of housing is more affordable.”

Marketlogics noted a distinct shift in the ratio of single-family versus multifamily construction permits in the state over the last 10 years. In 2004, more than twice as many single-family construction permits were issued compared with multifamily permits. By year-end 2014, figures showed that single-family construction dropped to multifamily levels, reaching slightly over 10,000 permits.

New Jersey's strongest markets remain in urban centers where apartments are in demand. “The recession has strengthened the apartment market as newly employed Millennials (due to student debt and stricter mortgage qualifications), as well as some previous homeowners, fled to apartment rentals,” says Kehl. “This is a trend we're seeing nationally, and not just in New Jersey.”

“In general, I expect to see positive trends in multifamily construction activity in New Jersey through 2015,” says Kehl. “I'm optimistic that multifamily activity will continue to shine while for-sale housing will increase albeit at a slower pace.”

Instant Insights /

Marketlogics: Hudson County Leads NJ Multifamily Construction

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