HACKENSACK, N.J., Dec. 22, 2022 /PRNewswire/ — Across the country, state-to-state, local municipalities have seen tremendous growth and stability. Now ranked 4th (US News), New Jersey rental rates have surged in recent months due to surrounding market increases from New York City (Ranked 2nd) as the pandemic federal moratorium on evictions and rental rates skyrocket. As part of the move from high-priced rents (up 7% nationally) and real estate, Jersey City has taken the notable new claim as the most expensive US city for renters.
With consumers flooding a hot market with high demand and short supply, such dramatic changes have given rise to other commuter cities.
The City of Paterson is emerging as a popular area for real estate investment after a history marked by urban degradation. Two of the city’s ZIP codes are among North Jersey’s fastest-appreciating real estate markets. Veloce Capital, a private real estate investment firm, earmarks development total capitalization for the last two years at an estimated $350 million to invest in 50 new multifamily buildings that include two high capital projects found at The Armory (300,000 SF – 138 Unit Rental) and Fair Street (230,000 SF – 188 Unit Rental).
Mayor Andre Sayegh develops a community focused on resiliency and fostering attraction through multiple projects. “We are positioning Paterson for progress, but we’re not doing it alone,” said Mayor Sayegh announcing $500,000 in funding for the iconic Great Falls chasm bridge.
Other projects of note:
- Rehabilitation of the Paterson Museum
- Groundbreaking ground of a new Quarry Lawn
- Revitalizing the abandoned Northside Library Building into a community resource center
Most of note is the development of The River Walk, attracting visitors to the natural landscape of the Passaic River, beginning at the Great Falls and continuing along the river to the West Broadway bridge showcasing ecological and water conservation education.
“When people come to Paterson, they’re going to spend hours upon hours learning about history, understanding about cultural heritage, and being able to try all the diverse foods Paterson has to offer,” said Michael Powell, Director of Paterson Department of Economic Development. “We’re just getting started.”
As the 3rd largest city in New Jersey, Paterson’s growth rate is .84% annually, with a population increase of 1.69% since 2020 census reports.
This growth rate is a direct reflection of Paterson’s robust rental market. Nearly 75% of the population occupies a total of 33,700 units compared to the remaining 25% of owner-occupied housing. The commanding majority of 70% (estimated) represent those renting 2-bedroom apartments or larger.
In addition, the local Paterson job market has seen a positive change from an unemployment rate in February (8.8%) to 5.6% in September to compete with highly attractive locales like Jersey City (3.1% September 2022). This shift, matched with the strength of a high-demand rental market, has lifted Paterson as a hub for cultural diversity, lower rental entry with high value for commuters, and a lively evolving community in close proximity to New York City.
“It’s amazing to see. We have been investing in ground-up multifamily buildings here for five years and have been investing in this market for over a decade, we have no intention to stop,” says Veloce Capital’s CEO, Surf Dinani. “Even during CoVid and today’s market, we are pushing forward to build Paterson into a highly desirable city like the Jersey City’s across the US.”
Veloce Capital, LLC is a leading passive real estate investment firm with 30+ years of fund leadership experience, $1BN+ in US transactions, and offers more ways to invest with a 10%+ return rate. Veloce Capital invests primarily in multifamily assets to provide investors with growth, short and long-term appreciation, attractive risk-adjusted returns, and flexible terms compared to traditional investing. For more information, please visit www.velocecapital.com.
U.S. Bureau of Labor Statistics – https://www.bls.gov/eag/eag.nj.htm
New Jersey Digest – https://thedigestonline.com/news/jersey-city-most-expensive-rent-in-us/