The New Jersey Apartment Rental Market in 2010

As with all future predictions, the future is unknown.  The best we can do is guesstimate what will be.  The rental market is tied to the real estate market with some caveats.  This is true in New Jersey, Florida and nationwide.

Apartments for rent that are single family houses can have a different trend than apartment complexes, garden apartments or apartment buildings.  If the general trend in real estate is downward which is caused by higher interest rates then the apartment complex owners will be more vulnerable because they need to redo their commercial mortgages and they need to keep the occupancy high.  This can cause a downward trend in the apartment rental prices, due to this financial pressure.

If, on the other hand, the pressure is from abundant real estate this can cause more pressure on single family apartment rentals because less people are looking to rent an apartment.  In New Jersey, so far, the pressure is on the abundance of available real estate.  But what's interesting in today's New Jersey Market (and elsewhere) is the difficulty to get mortgages, even though the rates are very competitive.  This can cause a steep decline in rental rates in New Jersey and beyond.