Jersey City is also known as the sixth borough of New York City. But right now, it can claim to be the first: In June, it was the most expensive city to rent a house in the United States, with an average rent of $5,500, according to famously expensive subways like San Francisco and Miami. according to a report from the Rent listing portal.
Rents have skyrocketed during the pandemic in the United States, spurred by a spike in inflation and a wave of tenants moving further away from their urban offices as they settle remotely, said Jon Leckie, a researcher at Rent. According to the report, the most expensive areas for renters consisted of a mix of tech hubs, major cities, and feeder markets for larger metros: Just behind Jersey City was Boston ($4,878) and the Silicon Valley hub of Palo Alto, California ($4,672). Then came the Los Angeles satellites of Glendale, California ($4,472) and Santa Monica, California ($4,357), followed by the Miami suburb of Coral Gables, Florida ($4,310), Hoboken, NJ ($4,264) and the Seattle suburb of Redmond, Wash. ($4,222).
Much of the migration has been fairly local, as tenants feel more comfortable with longer but less frequent commutes, said Mr. leckie. “They’re staying regional,” he said of movers. “Jersey City is a proxy for New York City in many ways.”
Researchers compared rents for one- and two-bedroom ads in June with the average rents in June 2021. (Mr. Leckie said the company didn’t have enough data on the listing in New York City to make an accurate calculation. According to Mr. a report by the Douglas Elliman, the average monthly rent in Manhattan was over $5,000 in June 2022.) Of the top 100 cities, Jersey City saw the third-highest annual rent increase, up 66 percent from June 2021 , when the average rate was $3,308.
The spike is partly due to a dramatic drop in rents last year due to Covid-19. Mr Leckie said he expects price growth to moderate but remain above prepandemic levels. But another critical factor is the wave of new luxury apartments that are luring New Yorkers across the Hudson River with more space and amenities than they could afford near their offices. More than 6,660 units are planned or under development in Jersey City, most of which are expected to be completed by 2026, according to Nancy Packes of Nancy Packes Data Services, a development consultancy and database provider.
“Jersey City was a net beneficiary of the pandemic,” said Ms Packes.