More U.S. households are renting apartments now, than at any point in the past 50 years, according to the PEW Research Center. Many of today’s renters do so by choice, citing greater flexibility in lifestyle, liquidity and maintenance. Increased mortgage rates, rising inflation and uncertain economic times all help to bolster the current multifamily rental market. While apartment leasing itself is forecasted to remain strong in 2023, the resident experience continues to evolve to better meet the needs of a growing population of renters by choice.
Indicators for the future of the New Jersey rental market
Inflation has cemented itself as the main concern for Americans over the past year and for good reason. The United States has seen costs rise across every single sector, but few have grown faster than housing. The state of New Jersey holds the distinction of having the sixth-highest rents in the nation and has seen an astronomical rise in those rents with annual growth rates peaking at nearly 33 percent in May of 2022.
Cheaper by the dozens: N.J. Legislature considers bill proposing unlimited restricted liquor licenses for annual fee
The New Jersey Legislature is considering a bipartisan bill (S355/A3710) that establishes a restricted beer, wine and cider license that would allow restaurants, for a small annual fee, to sell certain alcoholic beverages to their patrons. In an effort to counteract the diminution in value of already-owned liquor licenses, the proposed bill provides tax credit under corporate business tax and gross income tax for loss in value to certain alcoholic beverage licenses. Despite this tax credit, there is sure to be a significant decrease in the value of already-owned liquor licenses. This loss in value is likely to in turn diminish the value of the properties underlying those licenses.
Navigating a challenging market with Meridian’s Russ Drebin
Up until the last few months, this year was great. Rates were relatively low, and I was proactively advising clients to take advantage of the market while it was tame. However, since the market has taken a turn, it has been even more important to advise clients in a way that is transparent and focused on their specific goals. Knowing your client and knowing what their goals are will allow you to help them during a time when the market is great, and conversely at times when the market is not so great.
