The Garden State’s multifamily real estate market witnessed a powerful resurgence in 2025, marked by a massive spike in investment and the highest occupancy levels on record. According to the Cushman & Wakefield New Jersey Multifamily MarketBeat Year-End 2025 report, the sector has firmly rebounded from a sluggish previous year.
Total sales volume for multifamily properties hit $2.3 billion in 2025, a staggering 136.2% increase over 2024. The “Gold Coast” submarket remained the crown jewel of the state, accounting for nearly $900 million of those transactions alone.
New Jersey’s rental market isn’t just seeing more sales; it’s fuller than ever. Statewide occupancy reached an all-time high of 94.1%, jumping 300 basis points from the previous year.
While the rapid rent hikes seen immediately following the pandemic have begun to stabilize, growth remains positive. Average effective rents reached $3.07 per square foot at the end of 2025 and have already climbed to $3.11 in the first quarter of 2026.
The demand for housing remains unevenly distributed but strong across the state’s core regions:
- Northern New Jersey: Continues to lead the state with 94.8% occupancy and premium rents averaging $3.43 per square foot. The region has a massive development pipeline of over 77,000 units, with more than 2,000 units already delivered in early 2026.
- Central New Jersey: Middlesex, Monmouth, and Somerset counties maintained a solid 92.3% occupancy rate. Rents here averaged $2.31 per square foot, with momentum continuing to build into the new year as occupancy ticked up an additional 10 basis points in Q1.
Real estate experts attribute this surge to a mix of stable market fundamentals and a clearer financial landscape.
“After a cautious 2024, investors were drawn back in 2025 by stable fundamentals, tightening occupancy, and the long-term appeal of New Jersey’s transit-oriented submarkets,” Niko Nicolaou, vice chairman at Cushman & Wakefield said.
Ryan Dowd, managing director at the firm, added that the “re-opening” of the transaction market was the definitive story of 2025. Dowd noted that improved clarity in debt markets and motivated sellers allowed institutional buyers to re-enter the New Jersey market at scale.
