Buying investment property in New Jersey can be highly lucrative if you know where to look. Certain cities and neighborhoods offer better rental demand, population growth, affordability, and investment returns. This article will explore the top places to purchase real estate in New Jersey for investment purposes during 2022. We will analyze critical factors like market trends, rents, prices, and growth projections across different cities and zones. Whether you are looking to invest in northern, central or southern NJ, this guide will highlight the most promising investment property locations this year.
Hudson County boasts strong rental demand and price growth
Situated directly across from Manhattan, Hudson County has become an increasingly popular area for real estate investors. Cities like Jersey City and Hoboken have seen surging population and development over the past decade. Rental demand is very strong, with renter households making up over 60% of occupied housing units. Rents in Hudson County increased 5.9% in 2021 and are projected to rise 6.7% in 2022 according to Realtor.com. Home values also saw vigorous growth of 13.3% last year. Investors can target multi-family properties and condos for rentals, as well as fixer-uppers and flips in improving neighborhoods.
New Brunswick features affordable property prices and expanding amenities
Centrally located in Middlesex County, New Brunswick has attractive home prices and ongoing revitalization efforts. The median home value is approximately $310,000, making it very affordable for investors compared to other parts of northern and central Jersey. New Brunswick has also benefitted from the expansion of Johnson & Johnson’s headquarters, along with the growth of Rutgers University. These major institutions provide a stable pool of renters. New residential and commercial developments have also enhanced the city in recent years. Investors should scout for value-add multifamily and mixed-use properties.
Camden redevelopment initiatives drive growth in southern New Jersey
Once plagued by high crime and poverty rates, Camden has undergone a major transformation thanks to millions in public and private investments. Government tax credit programs have spurred massive projects, including corporate campuses. Home prices remain affordable at a median of $73,000, while appreciation is accelerating. Rents have been rising quickly as well. Investors can target single-family rentals, multi-family properties, and mixed-use conversions. Parts of Camden also lend themselves well to new construction projects.
Newark presents opportunities in multi-family and commercial real estate
As New Jersey’s largest city, Newark has long been a center of business, transportation and industry. Recent years have seen a boom in multi-family housing construction, especially luxury rentals. At the same time, commercial real estate is thriving from tenants in technology, healthcare and other sectors. Median home values approach $300,000. While rents and prices are climbing quickly in Newark, it remains more affordable than much of northern New Jersey for investors. Multi-family rental properties as well as commercial assets should be targeted.
Trenton offers low purchase costs combined with solid rental demand
Situated halfway between New York City and Philadelphia, the state capital of Trenton has some of the lowest home values in New Jersey. The median list price is around $70,000. Trenton provides easy access to major highways, rail transit and employers. The population and job market are stable. These conditions allow investors to enter the market at low cost while benefitting from steady tenant demand. Single-family rentals and small multi-family properties can cash flow well in Trenton.
For real estate investors seeking strong returns, New Jersey has many attractive markets across the northern, central and southern parts of the state. Hudson County, New Brunswick, Camden, Newark and Trenton are among the top locations to buy profitable investment property in 2022 based on price points, rental demand, redevelopment and growth outlook.