The State of Rentals in New Jersey
According to a recent article, New Jersey renters are having to work more hours per week in order to afford their one-bedroom apartment.
The average New Jersey renter making a median wage will be required to work 52 hours each week in order to afford a one-bedroom apartment. This data has been released in a study conducted by the National Low Income Housing Coalition, which is a nonprofit organization seeking to provide housing for people in need.
The organization also stated that a two-bedroom apartment in New Jersey will require that worker to work 62 hours in a week.
This study bases its metrics upon the calculation that an average renter should spend no more than 30% of their income on housing. Unfortunately, since New Jersey has the highest real estate taxes in the country and the cost of living in the Garden State is considerably higher than many other states, New Jersey renters are paying an accelerated rate when it comes to renting.
According to this study, rents in New Jersey have climbed approximately 33% from 2021. Compare that to domestic average rates, which have increased 26.5% for a one-bedroom and 25.7% for a two-bedroom year-over-year.
Another reason for this trajectory is that since home prices have continued to rise for the last two years at an average rate of 15 to 20%, many first-time home buyers have been priced out of the market, thus being forced to rent.
Another contributing factor is that mortgage rates have doubled in the last two years, making homeownership an even more costly process.
Here are some examples of what a fair market rent for a one-bedroom might be priced at:
Atlantic County $1,107
Bergen County $1,481
Burlington County $1,071
Essex County $1,223
Hudson County $1,711
Middlesex County $1,455
Monmouth County $1,230
Morris County $1,223
Ocean County $1,230
Union County $1,223
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.