North Jersey has become the most competitive rental market in the United States, outpacing the Sunbelt states. According to RentCafe.com’s latest ranking, eight of the top 20 hottest rental markets for 2023 are in the Northeast, with North Jersey leading the pack. The RentCafe.com analysis considered several metrics that reveal the rental market’s competitiveness, including the number of days apartments were vacant, the percentage of apartments occupied by renters, the number of prospective renters competing for an apartment, the percentage of renters who renewed their leases, and the share of new apartments completed.
North Jersey’s Rental Competitivity Index (RCI) score is 115, which is the highest in the country. This part of New Jersey has become a desirable location for renters looking for nicer apartments, more elbow room, and a better work-life balance while still being close to Manhattan’s attractions. With a relatively affordable cost of living for the tri-state area, aspiring homebuyers continue to rent in North Jersey, allowing them to save for down payments until the housing market cools down enough that they can fulfill their dream of owning a home.
However, finding an apartment for rent in this popular part of New Jersey is no easy task these days. There is a severe shortage of housing, and newly opened apartments accounted for only 0.27% at the beginning of the year. Moreover, an influx of newcomers, mostly transplants from gateway cities, pushed North Jersey’s occupancy rate to a high 96.6%.
The demand for rental units in North Jersey is also reflected in the number of prospective renters competing for an apartment. On average, vacant apartments are filled within 38 days, with 14 renters competing for each available unit. This situation is expected to continue for the foreseeable future, as the housing market shows no signs of slowing down.
Renters who choose to live in North Jersey enjoy a wide range of benefits. In addition to proximity to Manhattan, they can enjoy the region’s vibrant cultural scene, excellent schools, and ample job opportunities. North Jersey is also home to some of the country’s best healthcare facilities, including Hackensack Meridian Health and Atlantic Health System. The RentCafe.com report also highlights the impact of the ongoing pandemic on the rental market. With more people working remotely, some of the most expensive cities in the country, such as San Francisco and New York City, are losing their appeal as people search for more affordable and spacious homes outside of city centers.
With North Jersey becoming the most competitive rental market in the United States, renters in this region need to act quickly when apartments become available. To increase their chances of securing a lease, they must be prepared to pay a premium price and move quickly. Renters looking to secure a place to live in the area should be prepared for a competitive market and rising rent prices, but will ultimately find themselves in a vibrant and desirable location. Despite the challenges, North Jersey remains an excellent place to live, work and play.
Full-story: RentCafe (https://www.rentcafe.com/blog/rental-market/market-snapshots/us-hottest-rental-markets/)
