Rent Surges In NJ As Tenants Flock To State

NEW JERSEY — Renters around the country are on the move. Many of them have headed to New Jersey, contributing to intense competition for finding a home as rent across the state continues to surge, according to analysis of tenant markets.

From July through September, 194,171 renters moved to New Jersey, while 103,532 left the state, according to Rent.com. Only North Dakota had a higher proportion of renters moving in than moving out during that span.

New York had the second-highest rate of renters leaving during the third quarter. During that time, 146,775 tenants moved in and 377,838 went elsewhere.

In a survey earlier this year, 26.2 percent of New York renters said they wished to stay in-state, but 16 percent wanted to move to New Jersey, according to rent.com.

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The average rent in New Jersey fell 1.5 percent from August to September, according to rent.com. But the state's median rent grew 17.9 percent in the past year to $2,822 per month. Only Florida (+23.2 percent), South Dakota (+21.4 percent), Delaware (+18.9 percent), New York (+18.6 percent) and Rhode Island (+18.5 percent) showed greater annual increases in median rent.

Rent.com ties the rise in renter migration to several factors, including rising inflation, high costs of living in the United States and a historically competitive housing market. Buying a home in New Jersey has been a competitive process throughout the pandemic, with many leaving dense urban enclaves such as New York City for a bit more space in the Garden State.

The struggle to find a New Jersey home has trickled into the rental market. North and Central Jersey represent two of the 10 most competitive rental markets in the nation, according to RentCafe.

North Jersey has attracted renters, particularly Millenials, throughout the pandemic, into Jersey City and various locales. The region's rental units go vacant for an average of 35 days, with 21 prospective tenants competing for each listing, RentCafe says.

"Other hot spots for renting in North Jersey include Hoboken (which almost feels like renting in Manhattan but without the financial burden), Newark (where many would-buy renters are delaying their plans), Paramus (which is more like a bedroom community of New York City), and Englewood (a friendly suburb of the Big Apple that’s more affordable to live in)," RentCafe's report states.