New Report Looks at the Health of Jersey City’s Rental and Condo Markets

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jersey city hoboken market report q3 2017
Jersey City skyline. Photo by Jared Kofsky.

At this point, few need to be told that Jersey City is a hot real estate market and cranes that dot the skyline drive that point home. While exact numbers for rental and condo values are hard to pin down, one development advisory company has released new statistics that shed some light on where the market is and may be headed.

The Marketing Directors is a Manhattan-based company with sales teams all across North America. The marketing firm’s specialty is strictly new developments, and they’ve leased up local developments like 70 Columbus, Trump Bay Street, Journal Squared, Crystal Point, and Vantage.

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The company, which boasts over $30 billion in total sales, is selling condo units in Park and Shore and 99 Hudson, both currently under construction. They’ve crunched the numbers on last year’s trends for both Jersey City’s rental and condo markets.

According to their analysis, 2017 saw a total of 1,080 new luxury rental units added to the market. That growth was driven in large part by a few major rental high rises Downtown as well as Journal Squared. But interestingly, The Marketing Directors’ numbers show that even with the large increase in supply, average rents in Jersey City jumped up 7.9% over the year.

The report also looked at the average size of each market’s units. On the rental side, units in Jersey City tended to skew smaller, as one-bedroom apartments accounted for over 52% of the market.

As for condos, 2017 saw prices increase 9.3%, up an average of $51,915 to $609,050. Downtown’s neighborhoods had the most sales, as 55.6% of all Jersey City condo closings were for units east of I-78. Condos that closed in all of Jersey City tended to be bigger in size than the rental market; one-bedroom condos made up only 38% of the market, while two bedrooms accounted for nearly half the share of closings.

The Marketing Directors pulled data from publically available sources as well as the company’s own proprietary data. Regardless of the data source, the trends are apparent. Both the rental and condo markets are seeing rather steep upward trends. And while that’s great for owners and developers, it raises concerns about affordability for those without an ownership stake in the market. It also begs the question, how long can the market sustain this growth?

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6 COMMENTS

  1. These numbers don’t make sense when all the information from the NYC market has shown stagnating or falling rents in the luxury rental market. I find it extremely difficult to believe that the JC market would be so detached from Manhattan and Brooklyn. This also doesn’t correlate at all with my experience negotiating my lease extension for my 1BR luxury high-rise rental in downtown JC at the end of 2017. With due respect, this report smells like a company with a vested interest trying to pump their own product and pricing. With rising rates, the JC property reval and the state and local tax deduction limit, there are many headwinds coming to the NJ property market.

  2. Luxury in Manhattan is vastly different than luxury in Jersey City. Hudson County is still seen as a bargain to our friends across the river.

    A 7.9% increase in rents and a 9.3% increase in luxury condo prices last year doesn’t seem too far off.

    However, I too have seen rental concessions on new buildings and renewals in the new luxury buildings. I don’t know how this influences the average since there’s now more luxury units than ever before.

  3. JC is also much bigger than just downtown, there are areas like Bergen Lafayette, Greenville, Heights, West Side..etc that are still incredible value compared to prices across the river. You can still get brownstone and row houses for under $1m which is about the price of a 1-2 bdm condo in Manhattan. Also the tax reval might have actually helped some of these areas as some of the taxes went down. So I think you need to look at the market a little more detailed based on different areas of the city rather than just lumping everything into “Jersey City Market”.

    You also still have significantly low inventory, definitely in the single and multi family houses so even with lower demand you will still have room for slack. So another potential impact is market stagnates because there will be less demand for people to put there houses on the market, driving inventories even lower. Which means that could continue increasing rents in the area since people have to live somewhere…so if they are not buying they are renting.

  4. Got to look at $/sq ft and what year the property was completed. Rents going up 10% doesnt mean anything if square footage is going up 20%

  5. Good report. It matches what I’m seeing. Over half of my customers and clients are NYC buyers and renters moving to New Jersey and referred to me by NYC agents.

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