Can Jersey City Handle So Much New Apartment Supply?
Jersey City ranks #3 (following Brooklyn and Central Nashville) among the nation’s busiest submarkets, but this neighborhood is well positioned to handle the incoming supply. With nearly 8,000 apartments currently under construction, this submarket is scheduled to expand its existing base by 11.1% in the near term. In the past 10 years, Jersey City has averaged delivery volumes at a much softer 2,200 or so units annually. By comparison, over 4,900 units are scheduled to complete in calendar 2022, which is more than twice the decade average. Even with elevated new supply, however, this submarket is expected to absorb the new stock well, as apartments here are in high demand. As of February, occupancy in Jersey City was very tight at 98%. Effective asking rents were up 17.4% year-over-year as of February – a significant performance for this submarket. While fundamentals took a significant dive during 2020 and 2021 in the depths of the COVID-19 pandemic, Jersey City has recovered in recent months and is now outperforming historical norms.