More than 2,000 apartments are to be constructed in New Jersey to hit the market by the end of this year.
Since the housing crash these years, builders put the brakes on adding new condos and single-family homes. New Jersey's coastline was changed by some high-rise condos in areas like Jersey City and Hoboken.
Despite the weak new single-family homes market, builders are expecting to make full use of low apartment vacancies, higher rents and an improving job market. Some real-estate developers note the money will bear from the apartment building, while lenders are enthusiastic about financing larger condo construction project.
About 3,900 apartments, two times as those of 2011, will be built in Northern New Jersey in 2012. However, 800 units will also be constructed in Central New Jersey, according to the real-estate services firm Marcus & Millichap.
Wall Street Journal reported Carl Goldberg, managing partner of Roseland Property. He said the idea of living in an apartment community with amenities, not having the anxiety of the investment" of a home. It seems to be very appealing.
More people choose to rent, leading some former condo projects to switch to rental. BNE Real Estate is constructing a 139-unit rental building in Jersey City and another with 194 units in Fort Lee. Both were intended to be condos before the market turned, said Jonathan Schwartz, vice president of BNE.
"However, the condo market is by no means where it should be or where it was once upon a time," Mr. Schwartz added. "We are happy to get back to rentals."