Condo conversion projects and housing that is not selling are being put on the rental market, further complicating the slow apartment rental business. As a result vacancies are rising and landlords are being forced to cut rents to compete. Resulting in dropping sales prices for rental properties. Short sales are common in some areas and foreclosures are rising.
New Jersey is better situated than areas like Florida, Nevada, California, Ohio, and Michigan; states that are suffering and hemoraging over the glut of foreclosures. New York City, although seeing rents drop, is weathering the storm. I believe that New York City directly impacts New Jersey. When things go well in New York City , they also go well in New Jersey.
But things have slowed in New York with major job losses in Finance and Banking and impacting the New York and New Jersey economy. This is affecting more of the high end rentals, with the middle of the road rentals being favored by the working families downsizing and seeking housing that is lower than the cost of owning.
The lower end rentals are suffering as tenants can now move up to the middle of the road housing for the same or a little more in rent. The result Is that inner city housing is going vacant and foreclosures are skyrocketing. Investors who have bought, or the banks that financed them, in some of the cities are facing huge losses on properties.
The good news is that there are the children of the “baby boomers” who are coming into the market. Many of them want to rent in the cities and are welcomed by property owners, cities, and local businesses. Other positive signs for rentals is that residential construction starts are down, homeownership rates are declining, and millions of previous homeowners are looking to rent should work favorably for the rental market in the next few years.
For quality property owners/managers who buy, or have bought at the right price, and are good at marketing, tenant retention, operations, and communication the future is bright.
To research property for sale in New Jersey go to :
Paul R Hauke, BA, MBA Realtor Associate PRUDENTIAL ZACK SHORE PROPERTIES 401 Spier Ave, Allenhsurt, NJ Office (732) 988-4499 ext 123 cell (732) 899-8952
Paul R Hauke BA, MBA is a Realtor Associate with PRUDENTIAL ZACK SHORE PROPERTIES, Allenhurst , NJ , and specializes in commercial property marketing with over thirty (30) years experience.