By Joshua Burd
Multifamily sales volume in New Jersey reached $2.3 billion in 2025, a report by Cushman & Wakefield found, in a sharp rebound fueled by investor demand and record-high occupancy.
The research, based on data from CoStar, showed a 136.2 percent year-over-year increase in activity that reflected strength in both the northern and central regions, including $898.6 million in transactions in the Gold Coast submarket alone, according to a news release. Statewide occupancy climbed to an all-time high of 94.1 percent, up 300 basis points from 2024, while average effective rent ticked upward to $3.07 per square foot, with rent growth moderating from post-pandemic peaks while continuing on a positive trajectory into 2026.
“After a cautious 2024, investors were drawn back in 2025 by stable fundamentals, tightening occupancy and the long-term appeal of New Jersey’s transit-oriented, supply-constrained submarkets, particularly along the Gold Coast,” said Niko Nicolaou, vice chairman and co-head of Cushman’s Northeast multifamily advisory group. “We expect disciplined pricing and well-located assets to continue attracting strong institutional interest in 2026.”
Northern New Jersey continued to outperform, posting 94.8 percent occupancy and average effective rents of $3.43 per square foot, supported by robust renter demand and ongoing development activity, the news release said. The region accounts for more than 77,000 units in the current development pipeline, with 2,066 homes delivered in the first quarter of 2026, underscoring continued confidence in long-term market fundamentals.
Central New Jersey recorded 92.3 percent occupancy with effective rents averaging $2.31 per square foot, C&W said. New deliveries remained active across Middlesex, Monmouth and Somerset counties through year-end, while the firm cited continued momentum in Q1, with occupancy rising another 10 basis points in Central Jersey.
“While rent growth has normalized, the story of 2025 was the reopening of the transaction market,” said Ryan Dowd, managing director and co-head of the multifamily advisory group at Cushman. “Improved debt market clarity and motivated sellers created a window for buyers to re-enter at scale. That momentum, combined with record occupancy and limited long-term supply in core submarkets, sets a constructive tone for multifamily investment across New Jersey this year.”
