Market Strength in JC & Hoboken

Pavel Saikin
Oct 31, 2023
2 min read

Updated: May 8, 2024

Seemingly every week there is a new economic theory or model that catches major news cycles and becomes the hot new market prediction until the next one comes along. It's fast fashion meets market analysis. Rather, a simple method of analysis can often present a clearer understanding of market conditions. The Jersey City and Hoboken markets present two unique insights when the correct data is connected.

Growing Renter Population: The population is growing throughout Jersey City and Hoboken, primarily consisting of renters. The renter ratio will naturally lead to the majority of the growing population going to rentals, but a more critical factor to a growing renter population is the increased construction of rental buildings rather than condos. This will lead to an average of more home buyers than home sellers over the long-term trend.

Abundant Income: This will certainly not apply to everyone and each individual's disposable income will vary greatly, but the median income and median rent prices show that the majority of residents are living below their means. The standard income:rent ratio that is required for most rentals is 36 (gross income / 36 = maximum monthly rent). In JC Downtown and Hoboken, the median household income is approximately $160,000, which would be applicable for a rental just over $4400/mo. Given that the median rent price is around 3400-3500, the broader population is living well below their financial threshold. This is significant because the majority of the population are renters and their financial strength determines the strength of current prices and values.