New Jersey, or the garden town as it’s known as, is familiar across the world for its peaceful and a bit healthy environment. Tourists choose this peaceful heaven to spend their vacation away from the hustle and bustle of city life. It also holds the title of wealthiest state in the US and is ranked third in median household revenue generation.
Moreover, it provides incredible business opportunities to almost all types of investors because of its location which is very close to various famous cities, and the existence of more than 500 companies. Therefore, New Jersey short term rental market. with its consistent economic growth, is an ideal location for real estate investors to attain financial security.
Growth in New Jersey Short-term Rental Market
The New Jersey short-term rental market has made incredible progress in the real estate business within a short duration and is still growing at the rate of 16% annually. Moreover, it provides an easy route map to major cities like Newark, Florida, and Philadelphia because of its central location. Therefore, New Jersey short term rental properties are of top concern not only for investors but also for visitors who want to stay near the ocean.
Great variations in the prices of rental properties according to the location are also a top attraction for investors. The reason is that every investor desires to buy a cheap property and get hired revenue. Therefore, they are always looking for a location that can offer relatively lower rates than others. The train line is one of the best locations to invest in the New Jersey short-term rental market, especially for the establishment of vocational homes. This location includes old homes, foreclosures or pre-foreclosures, and neglected properties that are worth gold for the investors because of lower repairing costs
The biggest challenge that most investors face when it comes to making New Jersey short-term rental investment is to look for cheap properties in hot areas. Though the rental market has recently started growing, there’s highly extensive competition. However, many areas offer a wide range of prices from extremely higher to very low that anyone can afford. One of the easy solutions to this daunting task is to take the services of the real estate software that can help you to locate great deals for investing in this market.
Despite the lower unemployment rate that is annually declining by 15%, stable economy, and consistent growth of New Jersey short term rental market, real estate investors still feel at risk to invest. The reason is that New Jersey is a small town as compared to other major cities in the USA. However, it’s just a myth, investing in New Jersey is an economic and reliable decision that rewards in multiple ways.
In this article, we have discussed some major points to elaborate on the benefits of investing in New Jersey short-term rental.
Extensive Choice to Invest in Top short-term Rental Locations
Even though New Jersey is considered a small town as compared to the other cities in the US, it comprises more than 558 cities with 9.3 million inhabited in them. Therefore, it provides extensive choice in terms of locations according to the type of properties and budget. And anyone can afford to invest due to the lower prices of investment property in New Jersey.
Some of the top locations or states of New Jersey that are worth to invest are:
1. Weehawken
Thus a small city with 17k people is a hot market for real estate investors. Weehawken faces tough competition in Hoboken short term rental market, but it still manages to interact with a huge number of visitors and drive heavy traffic towards its short-term rental apartments.
When looking at the short-term rental of Weehawken from a numerical perspective it gives the following figures:
- Price for 1 bedroom median apartment $3020
- The price for 4 bedroom median apartment is $4000
- The annual increase in property values is 6% only
- The annual increase in rents is 14%
- The occupancy rate in Weehawken short-term rental houses is 77% which is incredible
- The average rent per day is $182
- Revenue growth varies from $1.3-$3.1k
2. Jersey City
The real estate business starts rapidly growing in Jersey city and makes a great comeback after the pandemic. The reason is that it offers great variation in property prices that can easily fit anyone’s budget. And when it comes to revenue generation Jersey city short term rental provides the investors with great numerical values.
- The average price for median apartments is $2988
- Annual rise up in property prices ~8%
- Per day rent for average apartments is $180-190
- The occupancy rate is 80%
- Average revenue is $1.5- 3.5k
3. Ashbury Park
This beachfront city of New Jersey is a top attraction for visitors to rent a house or family unit. The reason is the thematic, or natural parks, cultural music, and stunning pieces of art. Therefore it is also a hotspot for real estate investors. Despite higher prices, it is still the top attraction for investors. Some numerical details of Ashbury Park’s short-term rental market are listed below
- Annual rise up in rental houses demands 80%
- Increase in property price annually by 90%
- The average rent is $161 per day
- Average revenue growth is $1.2-2.7k which is exceptional and challenges the many famous locations such as Berlin and Madison short-term rental.
- It shows an outstanding occupancy rate which is 76-78%.
4. Madison
This famous town of Morris county in New Jersey is known for its historic stations and mesmerizing places. And also ranked on top of the best living places in the USA. Therefore, the Madison short term rental market is the appropriate choice for real estate investors.
- The median property value is $ 786,689
- The average rent is $ 250
- The revenue growth is $ 2.5-3.5K
- The occupancy rate is 79%
- Active rentals 107
5. Hoboken
This historical city of New Jersey is famous for the place of the first baseball game. And the presence of Steven’s institution of technology makes this city more attractive to tourists. Therefore the increasing demand for rental homes makes the Hoboken short-term rental market an outstanding place to buy rental properties and earn revenue.
It provides investors with the following figures
- The median home value is $
- The average rent for one day is $ 209
- The estimated revenue generation is $ 3.7K
- The occupancy rate is 77%
- Active rentals 290
6. Oxford
Oxford township of Warren county is a historical place, especially for hunting lovers. The reason is that it is located in mesmerizing hills that provide breathtaking scenery to visitors. And a million people visit this quiet town due to its historical charm. As a result, the demands for rental homes increase massively which gives a boost to the Oxford short term rental market.
- The median home price is $ 287,300
- The average rent is $ 779
- Rental income is $ 85,441
- The occupancy rate is 73%
- Active rentals 1035
7. Lakewood
It is one of the most populous towns in Ocean county and is famous for its community sense, and safe environment. Its strong economy and higher occupation rate provide a strong push to the Lakewood short-term rental market.
- The median home price is $ 419.9K
- The average rent is $ 600
- The revenue growth of 78,271
- The occupancy rate is 80%
Consistent Growth
New Jersey is a top attraction for people who want to stay in a rental home during their vacations instead of restaurants or camps. The reason is that rental or vocational homes provide wide spacing, privacy, and comfort for families, groups, and couples. Moreover, it also allows you to interact with neighbors and plan gatherings with them which is restricted in hotels. Therefore, the demand for rental homes is rapidly increasing, resulting in the consistent growth of the New Jersey short term rental market.
More Revenue
New Jersey ranked 11th in terms of population growth but counted in small towns when it comes to the area. But it still offers a lot of opportunities for real estate investors to buy properties at reasonable prices in multiple locations such as Jersey City, and Lakewood short term rental market to earn exceptional revenue and many other benefits.
Final Verdict
New Jersey short-term rental is an excellent opportunity to jump into an emerging field of business and maximize your revenue growth. Highly diversified property prices, extensive choice of locations to invest in, and incredible occupancy rates are the killer features of the New Jersey short term rental market that make it ideal for all tastes and budgets. However, it’s compulsory to have a comprehensive guide to investing in New Jersey short-term rental to make it a perfect hit. By going through all the above-mentioned information we reach the verdict that it is worth it to invest in New Jersey short-term rental and earn healthy returns.
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