It was undoubtedly a breakthrough moment in late March when Gov. Phil Murphy signed a law to pave the way for New Jersey’s next wave of affordable housing construction. Even for a bill that passed along party lines, it was a legislative solution to an issue that had vexed and eluded policymakers in Trenton for many years prior, as evidenced by the broad support it enjoyed.
Fast-forward to mid-October and the release of new figures on the affordable housing deficit in each of the state’s 564 municipalities, which must address the shortfall through planning and zoning that will support new development or improving the existing stock. As you’ll read in this month’s cover story, builders and advocates see it as a good starting point after more than a decade of uncertainty, conveying cautious optimism even as they confront the financial hurdles, legal battles and political debates that have slowed housing production in the past.
“The last round was really just born out of desperation and a little bit of chaos, so that really looms large for people,” said Melanie Walter, executive director of the New Jersey Housing and Mortgage Finance Agency. “But you have to refocus on really having that structure and that opportunity to rationally approach the issue now, and it really creates a different dynamic. So I think even the development community coming in will see that it will be a lower-stress environment, despite the general pushback that you’ll see, because there’s some certainty and there’s some understanding now.”
Walter, whose agency has helped finance thousands of low- and moderate-income units in the last two years alone, was part of a timely panel discussion in late October that contemplated the next steps of the new law. Hosted by the Urban Land Institute’s Northern New Jersey chapter, the program explored how local officials, developers and advocates could navigate challenges in the next round — from finding new financial structures to changing public perception about affordable housing — as they avoid past pitfalls.
Our latest issue also revisits the burgeoning data center market, covering another topic that’s on the minds of many commercial real estate players. A recent program hosted by NAIOP New Jersey highlighted that growth in the Garden State and nationally, thanks to technologies such as artificial intelligence and cloud computing, even amid significant uncertainty. As panelists noted, New Jersey has great potential and strategic importance as a data center hub, but that future may well be hampered by an electrical grid that’s already strained. That looms large for an asset class that is power-intensive and poised for exponential growth in just the next few years.
You can find those stories and more in our Winter issue, as we prepare to close out a year that many saw as a bridge to better times. Without question, there are submarkets and asset classes that will still be challenged in 2025, but the industry isn’t standing still by any means. Here’s hoping for a strong finish to 2024. Not to mention a safe, happy and healthy holiday season.
Until next time, thanks for reading and enjoy the issue!
Joshua Burd
Editor
