This trend made North Jersey the third most competitive rental market in the nation

With 13 prospective renters competing for every vacant apartment in North Jersey, the area continues to have one of the most competitive rental markets in the nation halfway through 2024.

RentCafe, in its recent Hottest Rental Markets report, named North Jersey as the third most competitive rental market in the nation, a title the region has held since the start of 2024. The area had been the hottest renting spot in the nation at the start of 2023, but finished off the year as the second.

North Jersey — including Bergen, Passaic, Morris, Essex, Sussex, Hudson and Union counties in the report — ranks just behind No. 1 Miami-Dade County and No. 2 Suburban Chicago.

What is the rental market like in North Jersey, and the Northeast?

With a Rental Competitive Index score of 82.3, North Jersey continues to have the hottest real estate market in the Northeast.

Of all of the apartments in North Jersey, only 0.60% of them are new. And North Jersey has one of the highest occupancy rates in the nation at 96%. The region also has a significant lease renewal rate of 71.7%, and apartments here typically remain vacant for about 43 days.

The report credits a trend known as "hipsturbia" for the consistent rental demand seen throughout North Jersey. The term refers to the phenomenon of younger generations, particularly millennials, flocking to live in areas with suburban charm and urban amenities after being priced out of larger cities.

"Hipsturbia is alive and well in small cities scattered across northern New Jersey — such as Hoboken, Jersey City, Newark, Union City, Passaic, Maplewood and Montclair — where renters (including millennials) enjoy walkable downtowns, just enough entertainment and relatively easy access to New York City," the report said.

The report said this trend also contributed to the 10th place ranking of suburban Philadelphia and the 14th place ranking of Brooklyn, where hipsturbia is king. Also from the Northeast, Bridgeport-New Haven, Connecticut; and Central Jersey made the list, ranking 11th and 17th, respectively.

How has rental competitive changed across the nation?

Overall, the state of the nation's rental market in 2024 has remained relatively the same from 2023.

Across the country, there are about eight prospective renters competing for every vacant apartment. Rentals have remained vacant for about 46 days, compared to 43 days in 2023, and new apartments still make up 0.61% of all available rentals across the nation.

Additionally, 62.% of renters renewed their leases in 2024, compared to 59.7% in 2023. And about 93.3% of apartments across the nation are occupied, compared to 94% in 2023.

Maddie McGay is the real estate reporter for NorthJersey.com and The Record, covering all things worth celebrating about living in North Jersey. Find her on Instagram @maddiemcgay, on X @maddiemcgayy, and sign up for her North Jersey Living newsletter. Do you have a tip, trend or terrific house she should know about? Email her at MMcGay@gannett.com.