Introduction to the Shift in NJ Suburbs
In the Garden State, signing a deed to buy a home is being outnumbered in certain areas by inking a lease to rent one. As housing affordability continues to decline nationwide, a growing number of New Jersey suburbs, especially, are now dominated by renters — recasting the classic vision of suburban life.
The Rise of Renter-Majority Suburbs
A new analysis of US Census data by Point2Homes reveals that 39 New Jersey suburbs with populations more than 10,000 are now renter-majority — a figure that leads the nation. New Jersey suburbs are becoming ground zero for the rise of the “renter majority,” as the dream of suburban homeownership slips further out of reach. Col. Wilson – stock.adobe.com
Demographic and Economic Transformation
Once a haven for aspiring homeowners who wanted to maintain close ties to New York City, the state’s inner-ring suburbs are seeing significant demographic and economic transformation as more residents lease rather than buy. Places like Harrison, Union City, West New York, Passaic, and Elizabeth are among the top 20 suburbs in the country with the highest shares of renter households.
High Renter Rates in Specific Suburbs
In Harrison, located near Newark, over 81% of households are occupied by renters; in Union City, it’s nearly 80%. The trend isn’t just about where people are living — it’s about how. According to a recent study by Point2Homes, 39 New Jersey suburbs now have more renters than homeowners — more than any other state represented in the national analysis. John McAdorey – stock.adobe.com
Leading Suburbs in Renter Rates
Places like Harrison, Union City, West New York, Passaic, and Elizabeth top the list, with renter rates exceeding 74%. Fotosforthefuture/Wirestock Creators – stock.adobe.com
Affordability Crisis and Changing Attitudes
The shift reflects both an affordability crisis and changing attitudes about homeownership, according to the National Association of Home Builders, which noted that nearly 75% of US households cannot afford a median-priced new home in 2025 — now hovering around $460,000 with a 30-year mortgage rate at 6.5%.
New Jersey’s Stark Shift
In New Jersey, the shift is particularly stark. Of the 15 suburbs nationwide that flipped from homeowner-majority to renter-majority between 2018 and 2023, four are in New Jersey — more than any other state.
Suburbs That Have Flipped to Renter-Majority
From 2018 to 2023, four New Jersey suburbs — including Bound Brook and Secaucus — were among the top 15 nationwide to tip into renter-majority status. Luis – stock.adobe.com
Examples of Suburbs with Growing Renter Populations
Bound Brook, for example, saw its renter population jump from just under 50% to more than 58%. North Arlington, East Franklin, and Secaucus also made the list, each undergoing a similar transformation.
Growth in Renter Households
Meanwhile, Elizabeth and Paterson added more than 3,500 renter households each over the past five years, ranking among the top 10 suburbs nationwide for absolute growth in renter households.
Drivers of the Trend
The movement isn’t just driven by rising home prices — it’s also a response to skyrocketing urban rents, especially considering nearby New York. The trend reflects both affordability challenges and broader cultural shifts: younger generations shaped by the 2008 housing crash are increasingly opting to rent, not just for financial reasons but for flexibility, remote work compatibility, and proximity to transit. Bildgigant – stock.adobe.com
Development of Rental Properties
In places like Elizabeth and Union Township, large-scale rental developments near train stations are rapidly reshaping once ownership-dominated landscapes, catering to renters priced out of New York City and nearby urban centers. Felix Mizioznikov – stock.adobe.com
The Appeal of Suburban Rentals
Younger generations, especially millennials and Gen Z, are turning to suburban rentals as a middle ground: close enough to transit, but far enough from the eye-watering rents on or on the other side of the Hudson.
Response from Developers
Developers have responded in kind. In places like Union Township and Elizabeth, mid-rise apartment buildings have cropped up near train stations, catering to commuters and remote workers alike.
Conclusion
The shift towards renter-majority suburbs in New Jersey reflects a combination of affordability challenges, changing attitudes towards homeownership, and the appeal of suburban rentals for younger generations. As the trend continues, it is likely to reshape the classic vision of suburban life and the way developers approach housing in these areas.
FAQs
- Q: What is the current trend in New Jersey suburbs regarding homeownership vs. renting?
A: Many New Jersey suburbs are now seeing more renters than homeowners, reflecting a shift in the traditional vision of suburban life. - Q: Which suburbs in New Jersey have the highest rates of renters?
A: Suburbs like Harrison, Union City, West New York, Passaic, and Elizabeth have among the highest shares of renter households. - Q: What are the main drivers of this trend?
A: The trend is driven by both an affordability crisis and changing attitudes about homeownership, especially among younger generations. - Q: How are developers responding to this trend?
A: Developers are building more rental properties, especially near train stations, to cater to the growing demand for suburban rentals. - Q: What does this trend mean for the future of suburban living in New Jersey?
A: The trend is likely to continue reshaping suburban living, with a focus on rental properties and amenities that appeal to commuters and remote workers.
