12,000 NJ Apartments Coming in Next Five Years

JERSEY CITY, NJ—Apartment rental prices in Jersey City went over the $50-per-square-foot mark in 2015, leading a rental price explosion that has also increased demands along the Garden State's new "urban gold coast." The Marketing Directors, a New York consultancy, says that means an additional 12,000 apartments will be built in New Jersey over the next five years.

Harrison, Newark, Edgewater, Fort Lee and Jersey City residential neighborhoods continued to experience strong leasing activity and higher rental prices in 2015, according to The Marketing Directors' year-end market report.  Jersey City led the way with up to 100 homes leased each month during the year in a number of developments upon opening, while the Newark, Edgewater, Harrison and Fort Lee markets remained stable with approximately 40 leases signed per month for mid-priced homes.

"New Jersey is primarily a rental market with developers building mostly one-and two-bedroom communities with finishes and amenities comparable to their Manhattan counterparts," says Jacqueline Urgo, president of The Marketing Directors. "The result has been tremendous, garnering extremely strong demand and much higher rental rates, especially in Jersey City and New Jersey's Gold Coast."

The Gold Coast is now above the $40-per-square-foot mark. Harrison and Newark also experienced higher rental rates in 2015, and now stand at over $30-per-square-foot.

The report also suggests that 90 percent of the construction pipeline in New Jersey is in rental buildings with mostly one- and two-bedroom configurations. Close to 5,000 units are under construction in Jersey City, with another 2,000 along the Upper Gold Coast. Upwards of 12,000 homes are expected over the next five years.

The condominium market is also expanding, as 99 Hudson will bring nearly 800 units online in downtown Jersey City.