Marcus & Millichap release apartment research report.

Marcus & Millichap Real Estate Investment Brokerage Company recently released its Apartment Research Report for the Northern and Central New Jersey area, where rising home prices and demographic trends are insuring the health of the sector, according to David Thurston, regional manager.

Following are some of the most significant aspects of the report:

Job growth is forecast to slow over the next 12 months, though expansion in outer-tier counties is gaining steam. Even though job growth is forecast to slow over the next 12 months, a gain of approximate y 1.4% is still expected, mirroring the national average. Strong growth has been realized recently in many of the counties beyond the metropolitan New York area.

The typical renting age population is forecast to grow after declining from 1990-2000, which should help tighten the local apartment market in the long term. Over the past 10 years, population growth in Northern and Central New Jersey has been heavily concentrated in those 80 years of age and older range. However, the 40-54 year old segment has also shown significant gains. The typical renter is between 20 and 29 years of age, and the local population in this range declined considerably from 1990 to 2000. Projections for the next five years, however, show that the proportion of this prime renting group is on the rise. The Bergen-Passaic and Newark areas are forecast to show growth in 20-29 year olds of more than 7.5% each.

While apartment construction is forecast to slow somewhat during the next 12 months, development activity in counties beyond the metropolitan New York area will increase. The Monmouth-Ocean region led the way in total housing permit activity last year, with more than 8,500 authorized housing units (single- and multi-family combined).

The Jersey City MSA dominated multi-family permits from 1998 to 2000, with more than 3,600 units authorized. While permit activity was off to a relatively slow start through the first quarter of this year, the strength of the economy will ultimately determine the pace of construction over the next 12 months.