People looking for an apartment find that there is extremely low supply amid sky-high demand – and even higher prices.
But is the rental market finally showing signs of calming down?
Ask any apartment hunter if they’ve had any luck. You will instantly see the frustration on their faces.
They finally find a place that was just listed, but by the time they pick up the phone to talk about it, there’s no more.
And it happens again and again.
“Very competitive. If you like something, in the next few hours you have to submit an application,” said Jeanette Belger of EXP Realty.
News 12 New Jersey met Belger in a 1,000 square foot two-bedroom, one-bathroom apartment in Robbinsville that cost $1,650 a month.
She says if anyone wants to find a place right now, they have to be aggressive.
“Recently I had someone in a bidding war for a rental. The rent was $2,100 and they asked me how high my client was willing to go,” Belger said.
His client lost him.
“There is no negotiation now. It will only go higher, not lower,” she warned.
The average rental price in Hudson County is $2,013. The average in Bergen is $1,967. In Morris it’s $1,860 and in Monmouth the average price is $1,827.
The good news, according to Caleb Silver of Investopedia, is that there has been some stabilization in rental prices in the state over the past month.
“In Monmouth County rents only went up 1.1% in April, Hudson 0.6%. Same in Bergen and Morris, you finally saw a drop of about 0.4%. C It’s after big increases over the past year,” Silver said. “But overall, I wouldn’t expect them to go down too far because inventory remains very, very tight.”
The question is why?
“What we’re seeing is people selling their house and they don’t find a house right away, so they’re renting for short periods of time,” Silver explained. “So they’re accepting rentals for people who are typical renters.”
This, in turn, creates a rental shortage and pushes prices up.
Belger shared tips for those looking to rent.
She recommends filling out an application immediately and providing references, perhaps from a previous owner.
She also said potential tenants should make sure their credit is top notch, don’t try to open up new credit cards.
Belger also advises against making major purchases, such as a car, for example.