In New Jersey, there’s been a noticeable rise in cases where people are signing home buying agreements, yet it seems many are still leaning toward rentals.
This shift is taking place as housing affordability continues to diminish across the country, especially in many New Jersey suburbs that are increasingly becoming rental-dominated areas. It kind of reshapes that traditional view of what suburban life looks like, doesn’t it?
A new analysis of US census data shows that in 39 suburbs of New Jersey, each with at least 10,000 residents, renters now outnumber homeowners.
It’s striking to see how the core suburbs, once seen as safe havens for hopeful homebuyers wanting to stay close to New York City, are undergoing major demographic and economic changes. More folks are choosing to rent instead of buy.
Suburbs like Harrison, Union City, West New York, Passaic, and Elizabeth are standing out as some of the top areas in the nation with a high concentration of renters.
For instance, in Harrison, a little over 81% of households are tenant-occupied, while in Union City, it nearly reaches 80%. This isn’t just about where people choose to live; it reflects a broader trend.
Recent surveys indicate that 39 suburbs in New Jersey are now experiencing a significant shift, with more tenants than homeowners.
Interestingly, between 2018 and 2023, four suburbs in New Jersey were among the top 15 in the U.S. to transition from having more homeowners to becoming majority-renter areas—this is, perhaps, telling of the statewide challenges.
Take Boundbrook, for example; the proportion of tenants jumped from under 50% to over 58%. Similarly, North Arlington, East Franklin, and Secaucus have seen comparable changes.
Meanwhile, cities like Elizabeth and Patterson have each welcomed over 3,500 new renter households in the last five years, making them among the fastest-growing suburbs for renters nationwide.
This trend is not just a reaction to escalating housing prices; it also ties to the surge in rental costs in urban areas, particularly due to proximity to New York City.
The shift reflects ongoing issues with affordability and broader cultural changes. In the wake of the 2008 housing crisis, many younger individuals are increasingly opting to rent—not only because of financial constraints but also for greater flexibility and better commuting options.
In places like Elizabeth and Union Township, new rental developments near train stations are catering to this demand, reshaping the traditional homeownership paradigm.
It seems the younger generations, particularly millennials and Gen Z, are eyeing suburban rentals as a more appealing option. It offers decent access to transportation while steering clear of the steep rents in the heart of urban centers.
Developers appear to be responding to this trend positively. In areas like Union Township and Elizabeth, mid-rise apartments are popping up close to train stations, catering to both commuters and those working remotely.
