Lack of Affordable Housing Bolsters Apartment Market in Northern New Jersey

ELMWOOD, N.J. — With a shortage of affordable housing in the entire region, apartment properties in Northern New Jersey will perform well in the months ahead, despite the effects of sluggish employment growth on household formation, according to a first-quarter Apartment Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

The marketwide vacancy rate is currently in the mid-3 percent range, and rents are rising by more than 4 percent annually, exceeding the rate of growth in most other markets.

“Assets with attractive assumable financing should move quickly if they are priced commensurate with underlying fundamentals,” says Michael Fasano, regional manager of the New Jersey office of Marcus & Millichap.

Following are some of the most significant aspects of the New Jersey Apartment Research Report:

· This year, 1,000 rental units will be delivered in the market, representing inventory growth of 0.5 percent.

· Vacancy is forecast to end the year at 3.5 percent.

· Asking and effective rents will each gain 4 percent to $1,548 per month and $1,500 per month, respectively.

· Employers in the Newark metro division, the largest labor market in the Northern New Jersey region, added approximately 1,800 jobs in the 12 months ending in the first quarter.

· Properties with 10 or fewer units have sold for a median price of $109,200 per unit in the past year, an increase of 5 percent from the previous span.

For a copy of the complete New Jersey Apartment Research Report, as well as reports on other markets nationwide, visit our website at http://www.marcusmillichap.com/ or contact Stacey Corso, Communications Department, (925) 953-1716