North Jersey Apartment Hunters Face Tough Competition: Report

NEW JERSEY — North Jersey is holding onto its spot as one of the toughest nuts to crack in the nation’s apartment rental market, according to a recent list of the “most competitive” in the U.S.

The North Jersey market ranked as the third-highest in the nation in a new study from RentCafe. Only Miami, Florida (#1) and suburban Chicago (#2) rated higher on the list.

According to the study, there are nine renters competing for each available unit in North Jersey, which includes places like Edgewater, Hoboken, Jersey City, Maplewood, Montclair, Morristown, Newark, Passaic and Union City.

Here are some other findings about the local rental market:

• Longer Renter Stays – “The average resident in North Jersey stays for 33 months (nearly three years), significantly higher than the national average of 28 months.”
• Longer Lease Terms – “New renters here sign leases for an average of 14 months, compared to the national 12.5 months.”
• Higher Renewal Terms – “When renewing, North Jersey renters extend their leases for 13 months, compared to the standard 12-month term.”

The recent score for North Jersey (85.7) is slightly higher than last year (85.4), RentCafe said.

“The area continues to attract professionals looking to stay close to jobs in Manhattan, NY, and Philadelphia, while high-income renters from New York City often relocate here for a better work/life balance without losing access to the city,” researchers said. “At the same time, Millennials and Gen Z renters are drawn to smaller, more efficient living spaces.”

Adding to the squeeze, high mortgage rates are keeping more potential buyers in the rental pool, RentCafe noted.

“Finding a rental in North Jersey remains a challenge, largely due to a slowdown in new construction, among other factors,” RentCafe continued. “Here, newly built apartments now make up just 0.14% of the local housing supply (down from 0.51 percent a year ago), keeping demand high and options scarce.”

“On top of that, 71.4 percent of renters renewed their leases, pushing the occupancy rate to 95.2 percent,” researchers said. “Thus, it now takes 41 days for vacant units to become occupied (three days faster than at the start of 2024), with the average number of applicants per unit holding steady at nine.”

Here’s how researchers came to their conclusions, RentCafe said:

“To compile this report, RentCafe.com’s research team analyzed Yardi Systems apartment data across 139 rental markets in the U.S. The data comes directly from market-rate, large-scale, multifamily properties of at least 50 units. Fully affordable multifamily properties were excluded. The markets were ranked based on a market competitive score. To calculate each market’s score, we ranked them according to five metrics and their averages for October through December 2024: apartment occupancy rate; average total days vacant; prospective renters per vacant unit; renewal lease rate; and share of new apartments completed during the same timeframe compared to the existing overall supply at the start of Q4 2024. We then compiled an average ranking by assigning a percentage weight for each metric: 30% for apartment occupancy rate; 15% for average vacant days; 15% for prospective renters per vacant unit; 30% for renewal lease rate; and 10% for the share of new apartments.”

See the full study and learn about its methodology here.

ADDITIONAL DATA

Data from other sources has also pointed to a rising cost for home renters in the area.

A recent analysis from Zillow found that New Jersey rental costs increased 5.5 percent between January 2024 and January 2025.

In Essex County, the typical rental cost was $2,186 in January 2024. The price was at $2,313 a year later – a 5.83 percent hike.

Other nearby areas didn’t fare much better. In Bergen County, the typical rent cost rose 3.42 percent, going from $2,712 to $2,805, Zillow’s analysis found.

• See Related: Rent Costs Rising Across NJ (County-By-County Breakdown)
• See Related: NJ Residents Struggling To Pay Rent, Mortgages, Study Says

Send local news tips and correction requests to eric.kiefer@patch.com. Learn more about advertising on Patch here. Find out how to post announcements or events to your local Patch site.