Jersey City Multifamily Developers Lead New Jersey to Outbuild New York

Bruce Beal, president of Related Companies, reflects on the missed opportunity of developing in Jersey City, visible from his office at 30 Hudson Yards. Despite rapid development in Jersey City's skyline, Related was occupied with other projects. The city's growth is driven by high rents and favorable regulations, making it a lucrative market.

Boom in Jersey City

Jersey City's rental market is thriving, with median rents surpassing those of major cities like San Francisco and Miami. The city permitted significantly more housing units per capita than New York City, indicating a pro-growth approach by local officials. Despite initial hesitation, Related Companies eventually invested in the area, recognizing its potential.

Developers Flocking In

Various developers from Manhattan's West Side are also seizing opportunities in Jersey City, attracted by its accessibility and development-friendly environment. Tax incentives have played a crucial role in fueling growth, with Jersey City becoming even more attractive after New York City's tax break expiration.

Pro-Growth Policies

Jersey City Mayor Steve Fulop champions pro-development policies, contrasting them with New York City's bureaucratic hurdles. Long-term tax exemptions have incentivized growth, providing developers with predictability and municipalities with substantial returns.

Rivalry with New York

New Jersey's housing production has outpaced New York's, leading to an exodus of residents seeking affordable options. New Jersey's Mount Laurel doctrine mandates affordable housing contributions from localities, fostering significant development across the state.

Challenges and Opportunities

While building in New Jersey is less costly than in New York City, it comes with its own challenges such as varying town regulations and project timelines. Despite the growth in multifamily construction, New Jersey still faces a housing shortage, particularly for low-income households.

Policy Shifts and Future Outlook

Efforts are underway to revise housing mandates in New Jersey, reflecting a shift in municipalities' attitudes towards proactive planning. With myths about growth debunked, more towns are embracing development to control their destinies and meet housing needs.