With each new year comes new trends and uncertainties for the markets. One thing remains the same though; Jersey City, and New Jersey as a whole, has always been a good place to make real estate investments. Here’s what to expect from the New Jersey real estate market in 2020.
New Jersey Will Continue to Benefit from New York
Jersey City has always benefited from being so close to New York City. New York has one of the strongest economies in the country and it is home to everything from mass media to finance and health care. There’s also a lot of people in the city, and more arriving by the day.
This has a knock-on effect for Jersey because it means there’s always new buyers looking for somewhere to live. One thing Jersey has over NYC is affordability. Many people live in Jersey but work in NYC, and many companies settle in Jersey to have access to the talent in NYC.
A Strong Economy
Outside of the benefits of being near New York, New Jersey has a strong economy all in its own right. The economy is set to stay strong during 2020. There’s always plenty of logistics jobs around the city thanks to the port in the city. Many trading firms and other financial institutions are opening up offices in Jersey too. The strong local economy is one of the reasons that Jersey is among the best places to invest in real estate for 2020.
No matter what kind of real estate investment you plan on making, everyone benefits when appreciation rates are high. There’s plenty of demand for all kinds of rental properties in New Jersey, which has led to consistent house prices in the area. The downtown area, for example, enjoys an appreciation rate of 10%; much higher than the national average for the USA as a whole. Now is the time to invest in real estate in New Jersey and have it be an investment that pays off later on.
The hardest part of owning a rental property is having to deal with the tenants. Even small issues can explode into something big if left unchecked. It can be particularly bad in areas that are especially favorable to tenants. New Jersey might not be the most landlord-friendly place around, but it’s still much friendlier towards landlords than nearby New York. For a start, New Jersey has a much simpler and faster eviction process when dealing with bad tenants.
Multifamily housing is sure to be a big part of the New Jersey real estate market in 2020. The market grew in 2019 and it will continue growing in 2020, particularly across the Gold Coast. There’s a lot of demand in the area for more urban living opportunities. Some developers will choose New Jersey over New York because it is cheaper, meaning there will be more affordable multifamily housing developments in New Jersey.
The New Jersey real estate market remains a hit with investors. It’s cheaper than New York City but still offers just about everything the city does. It also offers some benefits that the city doesn’t, such as better landlord rights.