By Joshua Burd
Housing demand in Trenton is on the rise, according to a recent market study, creating a need for nearly 1,300 new residential units in the downtown over the next five years.
The analysis released by Greater Trenton, the organization dedicated to promoting economic revitalization in the city, found that the potential market in the downtown is a third higher than in 2018. That translates to up to 1,270 new units, including 995 rental apartments, 200 for-sale rowhouses and townhomes and 75 for-sale condominiums over a five-year period.
The study, conducted by Zimmerman/Volk Associates Inc., analyzed 39 competitive rental apartment properties in the region with a combined supply of more than 8,250 units and a reported stabilized weighted occupancy of 98.3 percent. It projects that some 43 percent of the demand for new units in downtown Trenton would come from within the city, while the balance would come from elsewhere in Mercer County, along with Middlesex, Burlington, Somerset and Monmouth counties, Bucks County in Pennsylvania and outside the region.
Greater Trenton released the downtown Trenton residential market study, an update to a 2018 analysis, in sponsorship with Wells Fargo and New Jersey Realtors Association.
“We’re excited to see continued healthy residential demand within our historic and diverse capital city,” Trenton Mayor Reed Gusciora said. “From its unique cultural assets to its robust arts community, wonderful mix of restaurants and its tremendous highway and rail access, Trenton stands strong as an attractive destination to live, work, play and visit.”
Zimmerman conducted both the 2018 and 2023 studies, citing the attraction of Trenton’s mass transit options, its walkability, a range of affordability, a vibrant arts community and a rich history, among other attributes. Citywide, the annual average potential market for new and existing housing over a five-year period is 5,670 households, according to Greater Trenton, drawing from cohorts such as younger singles and couples, empty-nesters and retirees and traditional and nontraditional families of all incomes.
“Greater Trenton was formed to create opportunities for all current and future residents and businesses in Trenton by advancing economic development,” said Kevin Cummings, chair of Greater Trenton, an independent nonprofit with broad support from the state’s business community. “We are pleased to commission this study which quantifies the residential demand within Trenton’s downtown core in furtherance of our mission.”
The study, meantime, noted that the 2008 housing crash continues to reverberate through the market and has fueled demand for mixed-use, walkable developments — particularly in downtown and in-town neighborhoods — from the Baby Boomer and millennial generations. That bodes well for locations like Trenton, the organization said, despite a wave of movement to the suburbs early in the pandemic.
Advocates also expect it to remain an option as for-sale housing inventory shrinks and home values rise, while noting that the capital city’s population continues to grow.
“Trenton continues to benefit from a 7 percent increase in population to nearly 91,000 residents and becoming one of the top 10 largest municipalities in the entire state” said George Sowa, CEO of Greater Trenton. “As we look to maximize Trenton’s residential market, it will be important to focus on developing higher-density housing types while also redeveloping existing buildings in downtown Trenton.”
New Jersey Realtors Association CEO Jarrod Grasso added: “There are numerous real estate assets, both historic and modern, that enhance the attractiveness of residential living in Downtown Trenton. Prominent attractions in Trenton from the Old Barracks to the Cure insurance Arena to the War Memorial and others are also complimented by Mercer County’s regional attractions including Grounds for Sculpture, Princeton University Art Museum, Washington Crossing Historic Park and more.”
