While a new report indicates that the torrid pace of rent increases continues in Jersey City has slowed, a broker who specializes in upscale apartments isn’t worried about the market.
According to the Apartment List November 2023 Rent Report for Jersey City, during the first ten months of 2023, rents rose 6.6%. From January to October in 2022, in contrast, rents increased by 11.6%.
The median rent in Jersey City fell by 1.8% in October, to $2,362, leaving rents 2.7% higher than the same time a year ago.
Citywide, the median rent is now $2,199 for a 1-bedroom apartment and $2,366 for a 2-bedroom. Across all bedroom sizes, the median rent is $2,362, placing Jersey City 7th among the country’s 100 largest cities.
If the data says the rate of increase is slowing, real estate broker Diana Sutherlin isn’t convinced it’s meaningful. “It’s a strong rental market across all different types of rentals.” She ascribes a one month negative number in October to seasonality. “These rental towers are going crazy. I just rented a two with den over at 77 Hudson. I had three offers immediately and got over asking. We got like $7,900.”
Indeed, a second study in September, from the rental website Zumper, ranked Jersey City the 2nd most expensive of 100 cities examined for a 1-bedroom, behind New York City and just ahead of San Francisco.
While Jersey City and New York City continue to see big rent increases, the picture nationally is quite different where, according to experts, there is a strong possibility of year-over-year rent decreases in the near future.
The high price of Jersey City rentals will come as no surprise to housing advocates who have decried the lack of affordable rental options. In response, last week the City Council passed zoning changes designed to increase density and drive down housing costs.
Meanwhile, even tenants in high-end apartment buildings are fighting against the upward march in rents. On October 19, renters at the upscale Portside complex Downtown won a major victory when the Rent Leveling Board ruled that their apartments should have been rent controlled, exposing the landlord to claims for rent overcharges in excess of $75 million.