The Rental Market
More than ever, rent hikes and prices are the talk of the town. With rents soaring, many are wondering when rental prices will stabilize and whether it’s a better decision to buy. The demand for rentals in Jersey City and Hoboken has grown as renters seeking value pushed into New York’s outer boroughs and across the Hudson River. Jersey City leads the nation in apartment rental growth and has the second highest rental prices, tied with San Francisco and behind New York City which ranks #1. In Jersey City, the average rental price increased 28% from 2022 levels. Average rental price for a 1BR apartment in April 2023 in NYC was $3570, Jersey City was $3000, and Hoboken was $2930. Also interesting to note that rental prices are often higher than listing price due to high demand.
Some landlords in Hoboken and Jersey City have raised rents by 20-30% which led tenants to file complaints to their city government. In Hoboken, Mayor Ravi Bhalla sent a letter to management companies urging them to reconsider the “unconscionable rent increases imposed on hundreds of residents in buildings”. According to the patch.com, New Jersey law does not cap how much properties can raise rents on properties that are not subject to rent control, but the law does say the increase can’t be “unconscionable or unreasonable.” Court precedent says that’s usually around 25 percent, according to experienced tenant advocates. Many properties in Hoboken and Jersey City do fall under rent control, and if a tenant is renewing their lease, there are limitations to the amount the rent can be increased at time of renewal.
Buyers and Sellers
For buyers and sellers, the market landscape remains in line the key trends we’ve seen this year. Inventory levels are low compared to 2022 levels, prices are high, and buyers less focused on interest rates than getting their offers accepted. One thing to keep in mind: if you are considering buying rather than putting up with rent hikes, people with higher credit scores get much better rates than those with lower credit scores.
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