New Jersey has one of the most prospering and expensive rental markets in the nation. A study conducted by HomeUnion states that New Jersey is one of the best places to invest in a home – whether for residing or as a real estate investment.
As a real estate agent, the great locations, home values, rent prices, job availability and quality school systems are working in your favor and help increase the demand for rental housing in New Jersey – which drives your clients to purchase in the area. When talking with your clients remind them that while the market always fluctuates there are a few promising things to consider about the state of the New Jersey rental market, and why purchasing here is a smart move for investors.
New Jersey is an Expensive, but Popular Rental Market
New Jersey has the sixth highest rent in the nation, falling just behind Hawaii, Washington, D.C., California, New York and Maryland – with New Jersey’s average rent exceeding $1,300 each month. However, for good reason: New Jersey is home to great school systems, and more.
Several NJ cities and suburbs are consistently earning spots on “best places to live” and “best investment opportunities” lists. New Jersey is also home to countless “best places to work organizations,” making this state a desirable place to live and invest in. Additionally, New Jersey’s unemployment rate just fell to 4.7% – another reason people are coming to and staying in the state.
With that being said, paying tenants need to make about $26 an hour to afford the average two-bedroom apartment in New Jersey.
New Jersey is Home to the Best Rental Markets in the Nation
A study conducted by HousingWire.com identified the best markets in the nation for future growth in single-family rental returns. “In these counties, weekly wages grew by at least 5% annually, and wage growth grew at a faster rate that annual rental rate growth,” HousingWire discussed.
Of the top five markets identified in the nation, two of them are in New Jersey.
- Camden County boasts an annual gross rental yield of 12.9% and an annual wage growth of 5.5%.
- Warren County boasts an annual gross rental yield of 10.8%, and an annual wage growth of 6%.
By investing in a rental property in one of these areas, your clients are in for a steady stream of extra income.
Overall, the New Jersey rental market remains strong and stable. Investing in a New Jersey rental property is a strong investment decision. History and trends are in NJ’s favor – remind your clients and sell more real estate.