Shifting demographics and job opportunities are contributing to the continued prosperity of rental housing in New Jersey, experts say.
Data shows that home purchases remained low compared to pre-recession figures, but experts say that may not be a bad sign, according to the New York Times. Conditions encouraged homeownership for people who would be better served financially by choosing to rent, and the market is now establishing a new equilibrium. Information collected by the Otteau Valuation Group shows that New Jersey saw its homeownership rate decline from 71.3 percent in 2005 to 64.4 percent during the first quarter of 2012.
That is a steeper drop than the national census figures, which suggest homeownership dropped from a high of 69.2 percent in 2004 to 65.4 percent, a 15-year low. Now, as many Americans and the real estate industry are struggling to adjust to the new housing market, the state has a higher rate of rentership than the national average, with 35.6 percent compared to 34 percent across the country.
Real estate investment trusts and other stakeholders are trying to shift gears and meet this demand. As a result, the state may have significantly greater need of rental property management services than it has in the past.