New data from RentCafe found Northern New Jersey to be the most aggressive renting market in the nation. As a result, occupancy rates for residential rental properties, have been driven as high as 97 percent. That’s well above the national average of about 60 percent. According to WealthWay Equity Group Vice President Michael Liebman, rent is being driven by the high demand for housing in the New York metropolitan area. “A lot of people are being priced out of Manhattan, and there’s not enough inventory [in surrounding areas],” Liebman said.
Liebman adds, when people do find housing, they tend to hold on to it. That is also driving the occupancy rate up and making it even harder to find housing in the area. “There’s not many vacant units, so it’s driving up the cost in many different areas,” Liebman said. There’s been a domino effect, you know, rents have been skyrocketing all over the country – [you’re seeing it] in New York, and now you’re gonna see a little bit of it in New Jersey, too”, said Liebman.
Demand looks to remain high for the foreseeable future. Liebman says the best way to solve the problem is to build more housing to make room for the high demand.
