The growing costs of homeownership is fueling rental demand, according to a recent Marcus & Millichap North Jersey Multifamily Research Market Report.
Renting will remain the most affordable option for many as the gap between the average rent and mortgage payment expands. The continued rental demand coincides with new development, which has been on an upswing in recent years.
Completions over the past four years averaged 6,800 units per year, with the trend continuing in 2018 as 7,700 apartments will be delivered, 3,500 of them in Jersey City.
The region’s Class C vacancy rates hit a decade low of 3.2 percent in March, with the downward movement expected to continue, notably in Essex and Union counties where rent is most affordable.