Deep Dive into New Jersey’s Multifamily Rental Market

Member Paul Fiorillo, director of research for Yardi Systems’ multifamily data division, addressed the state of the multifamily rental market in Northern New Jersey. While the overall growth rate of multifamily is holding steady at 2.5% with a high (96.4%) occupancy rate, the amenities-rich “lifestyle” category has emerged as the leader, representing close to 90% of all new multifamily construction. This trend was initially fueled by Millennials entering the workforce and Baby Boomers starting to downsize. Today, we’re beginning to see young Millennial families leaving the city in search of good school systems and affordable day care. They’re settling into suburban towns that offer the social and cultural benefits of city life with proximity to transit. The old “big house with white picket fence” paradigm has been replaced by high-end multifamily units rich in amenities. The prediction is that within ten years, more and more suburban towns will look different, with vibrant, walk-able downtowns that offer the cultural and social benefits of cities coupled with good schools, green spaces and easy commutes to the city.