New Jersey rental market booms amid low inventory

The New Jersey apartment market may experience low vacancy levels this year.

The level of available rental properties in New Jersey is extremely low, which may suggest 2013 could be a strong year for property management companies and many other aspects of the state’s multifamily market.

The rental market may experience a total market vacancy rate of as little as 2 percent this year, according to a report from the Otteau Valuation Group. This would be significantly lower than the peak level in 2010, when it was more than 5 percent. The last time figures were this low was in 1970.

Rental prices may continue to rise this year, and figures could climb as much as 5 percent in some areas, noted, citing the report. Development may boom in the state, as apartment permits increased by more than 50 percent last year.

“I have seen it in places like New York City, which is obviously a very hot spot when it comes to the rental market,” Jeffrey Otteau, president of Otteau Valuation Group told the news source. “But I haven’t seen it here in New Jersey before.”

Some of the added demand for apartments in the area are due to the state’s population being affected by Hurricane Sandy, Otteau added, according to the news source. This resulted in many people looking for temporary housing.

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