Construction Gains Aren’t Enough
Despite a construction boom that saw builders complete 1.45 million units in 2023 and 1.63 million in 2024 (both records since 2007), the pace still isn’t sufficient to address the underlying shortage. New Jersey faces particular challenges with zoning restrictions and limited available land, making new construction expensive and time-consuming.
The state’s complex regulatory environment often slows development, even as demand continues to outpace supply. While some municipalities have begun embracing higher-density development, progress remains uneven across the state.
Solutions for New Jersey
Housing experts consistently point to zoning reform as a key solution. Relaxing restrictions to allow for more density could help create affordable housing options, including accessory dwelling units (ADUs), duplexes, and triplexes. These “missing middle” housing types could provide more affordable options for New Jersey families.
Recent state initiatives aimed at encouraging affordable housing development show promise, but implementation at the local level remains crucial. Communities that embrace thoughtful density increases often see more balanced markets and improved affordability over time.
What This Means for New Jersey Real Estate
For buyers and sellers in New Jersey, understanding these broader market dynamics is essential. The housing shortage means:
- Continued competition for available homes, especially in desirable school districts
- Persistent price pressure despite fluctuating mortgage rates
- Rental market strain as potential buyers remain renters longer
- Generational housing trends with more young adults living with roommates or family
As New Jersey continues to grapple with these challenges, successful navigation of the housing market requires realistic expectations, strategic planning, and often, creative solutions. Whether you’re a first-time buyer, growing family, or investor, understanding these market fundamentals will help inform your real estate decisions in the Garden State.
About Counsellors Title Agency
We are an award-winning agency and one of New Jersey’s leading title insurance businesses, based in Toms River. Counsellors is known for its team of knowledgeable service professionals recognized for its exceptional title, settlement and escrow services, for all 21 New Jersey counties. Its glitch-free signature service provides confidence to home buyers, sellers, and industry professionals. The knowledge base of its staff has processed over $17 billion in orders and established itself as a pillar of trust and benchmark of excellence within the real estate community.