Inflation is not only being driven up by the ridiculous prices of food and fuel, but also in the prices of existing homes. And so between the high prices and general cost of living, rental prices are also on the rise, the cost of living to soar. 
According to RealPage, apartment occupancy struck a new high of 97.5% in November, which is typically a time when such rates decrease.
This resulted in apartment rent and occupancy setting new records in November for asking rents for new move-in leases, increasing by 13.9% year-over-year.
Another driver in demand is household formation, which was gaining momentum until the pandemic hit, but now has resumed.
New Jersey Rental Market
New Jersey has the 5th highest rent in the country out of 56 states and territories. The Fair Market Rent in New Jersey ranges from $1,260 for a 2-bedroom apartment in Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA to $1,958 for a 2-bedroom unit in Jersey City, NJ HUD Metro FMR Area.
The average Fair Housing Market Rent in both Monmouth and Ocean counties is $2,277 for a 3-bedroom home. According to an article published in NJ.com, “The price of a one-bedroom apartment in Jersey City, for instance, went up by nearly 7% over the last year, according to Apartment Guide, making Jersey City the ninth-most expensive metropolitan area in the country.”
In addition to the increase in household formation, the WFH economy is driving demand as well.
The unabated surge in home prices has slowed, according to S&P CoreLogic CaseShiller, but the places where demand is peaking, is where rents are also peaking. Such cities with the highest price increases include Phoenix, Tampa, and Miami.
At the core of the problem is the crisis in inventory, where most professionals see the market demanding at least one million new homes need to be constructed.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.