Last updated on January 10th, 2024
Looking for a way to achieve financial independence? Investing in the best places to buy rental property in New Jersey could be the answer!
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Looking for a way to achieve financial independence? Investing in the best places to buy rental property in New Jersey could be the answer!
- Last updated January 10, 2024
Key Takeaways
- New Jersey is a great state to invest in if you’re looking to make some passive income from STR properties. It hasa good economy, stable rental demand, and solid tourist markets. It’s a great spot to get your business off the ground!
- Get an overview of the best rental markets in NJ while discovering their Airbnb data and recommended property sizes with the help of Airbtics.
Discovering the Ideal Investment Spots: Best Places to Buy Rental Property in New Jersey
Located within both the Mid-Atlantic and Northeastern regions of the US, we can find the most populated state, New Jersey, a destination that features a unique combination of natural beauty and exciting cities. Also known as the Garden State, NJ
New Jersey owns a solid economy and offers plenty of job opportunities as well as an amazing quality of life to its residents and visitors. Moreover, considering the new restrictive STR regulations in NYC, the rental demand in NJ has been experiencing steady growth. Therefore, it is no surprise that you are interested in investing in the real estate market in New Jersey. However, first, you need to come up with smart strategies to ensure your rental success while also focusing on the best areas to invest in.
If you’re looking to invest in Airbnb in New Jersey, then this blog is for you! We’ll show you the best places to buy a rental property in New Jersey, plus some of the advantages that the state offers to real estate investors. Keep reading to learn more!
Why should you consider buying a rental property in NJ?
Investing in the rental market of NJ is an excellent way to obtain a positive cash flow thanks to the attractive opportunities that it offers to real estate investors.
But, there’s an important question that one must answer – what kind of advantages does this state offer to property investors? Check out some of the top reasons why you should consider investing in NJ’s rental market:
Flourishing real estate & rental market
New Jersey owns a stable rental market that has been experiencing positive growth in its demand in recent years. The demand for rentals in the state is high, especially in municipalities close to major metropolitan areas like New York and Philadelphia. This opens up profitable investment opportunities for investors aiming to cater to STR accommodations.
In addition, New Jersey offers a variety of tax incentives and programs to encourage real estate development and investment. These encompass tax abatements, tax credits, and other advantages designed to assist investors in lowering their tax burdens and enhancing their overall returns!
Stable economy & solid job market
New Jersey is an innovative state with a solid and diversified economy. The stronger sectors include industries like biopharmaceutical & life sciences, retail, logistics, financial services, technology, manufacturing, and hospitality among others. The state’s GSP reached $569.5b in 2022 as confirmed by IBISWorld with growth of 1.2% over the 5 years. On top of that, New Jersey has one the highest annual median household income in the US, at $89,703.
The state is home to several big companies like Amazon, Wakefern Food Corporation and Bank Of America Corporation. These companies provide a plethora of job opportunities that make young professionals relocate to the city.
Good quality of life
The state of New Jersey features a strong job market and amazing living conditions, which are some of the reasons why the state is experiencing steady population growth. Municipalities in NJ offer well-developed infrastructure, good public services, reliable public transport, and a wide range of shopping, dining, and entertainment options.
On the other hand, the median housing prices vary depending on the municipality. For example, in major cities like Jersey City, the median house value is $633K, $600K in Elizabeth, and $440K in Newark.
Rich culture and plenty of leisure options
New Jersey is a state that blends natural beauty, culture, and a range of unique experiences together. The state is home to a variety of towns and cities, each of them with its own charm and characteristics. From bustling to serene destinations, NJ’s municipalities offer plenty of beach experiences, cities with vibrant nightlife, thriving cultural scenes, and fascinating historic attractions.
Little by little NJ became a destination loved by travelers! In fact, over 114M tourists visited the state just in 2022. So if you’re looking to cater to tourist accommodations, then you will surely love NJ! But first, take your time a explore its different areas using an Airbnb market research tool.
Is Airbnb Profitable in New Jersey?
Wondering if Airbnb real estate investments are worth it? Don’t worry because Airbtics confirms that investment properties in New Jersey are worth the effort!
Based on Airbtics’ Free Airbnb calculator, an Airbnb host can earn up to $54,201 with an average occupancy rate of 82% for managing a 2-bedroom property in Jersey City, NJ.
Investing in rental properties in New Jersey can be a great way to generate a good rental income. But don’t go too fast because analyzing factors like the ideal property type and location is essential to generate high profitability. Moreover, you must also learn about the Airbnb Rules in New Jersey’s Municipalities to avoid major legal issues while operating a STR property.
10 Best Places to Invest in Real Estate in New Jersey
Finding the best spot to set up an Airbnb listing in New Jersey may be quite the challenge considering that the state is divided into 254 boroughs, 52 cities, 15 towns, and 3 villages. But let us lend you a helping hand!
Check out the best rental markets in NJ and are recommended for rental property investments:
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|---|---|---|---|---|---|
| Location | Airbnb Listings | Best Number of Bedrooms | Median Property Price | Airbnb Annual Revenue | GRY |
| Ocean City | 440 | 4 bedrooms | $1,270,000 (4 BR) | $122,334 | 9.63% |
| Cape May | 235 | 1 bedroom | $575,000 (1 BR) | $91,460 | 15.91% |
| Hoboken | 172 | 2 bedrooms | $862,000 (2 BR) | $76,754 | 8.90% |
| Asbury Park | 149 | 1 bedroom | $499,000 (1 BR) | $62,719 | 12.57% |
| Atlantic City | 622 | 3 bedrooms | $319,000 (3 BR) | $49,670 | 15.57% |
| North Bergen | 164 | 2 bedrooms | $450,000 (2 BR) | $49,471 | 11% |
| Elizabeth | 185 | 2 bedrooms | $315,000 (2 BR) | $38,193 | 12.12% |
| Bayonne | 94 | 1 bedroom | $239,000 (1 BR) | $37,685 | 15.77% |
| Jersey City | 695 | 1 bedroom | $410,000 (1 BR) | $36,529 | 8.91% |
| Newark | 862 | 2 bedrooms | $399,000 (2 BR) | $34,421 | 8.63% |
Location
Airbnb Dataset
- Total Number of Airbnb Listings: 440
- Best Number of Bedrooms: 4 bedrooms
- Median Property Price (4 bedrooms): $1,270,000
- Airbnb Annual Revenue: $122,334
- Gross Rental Yield: 9.63%
- Total Number of Airbnb Listings: 440
- Best Number of Bedrooms: 1 bedroom
- Median Property Price (1 bedroom): $575,000
- Airbnb Annual Revenue: $91,460
- Gross Rental Yield: 15.91%
- Total Number of Airbnb Listings: 172
- Best Number of Bedrooms: 2 bedrooms
- Median Property Price (2 bedrooms): $862,000
- Airbnb Annual Revenue: $76,754
- Gross Rental Yield: 8.90%
- Total Number of Airbnb Listings: 149
- Best Number of Bedrooms: 1 bedroom
- Median Property Price (1 bedroom): $499,000
- Airbnb Annual Revenue: $62,719
- Gross Rental Yield: 12.57%
- Total Number of Airbnb Listings: 622
- Best Number of Bedrooms: 3 bedrooms
- Median Property Price (3 bedrooms): $319,000
- Airbnb Annual Revenue: $49,670
- Gross Rental Yield: 15.57%
- Total Number of Airbnb Listings: 164
- Best Number of Bedrooms: 2 bedrooms
- Median Property Price (2 bedrooms): $450,000
- Airbnb Annual Revenue: $49,471
- Gross Rental Yield: 11%
- Total Number of Airbnb Listings: 185
- Best Number of Bedrooms: 2 bedrooms
- Median Property Price (2 bedrooms): $315,000
- Airbnb Annual Revenue: $38,193
- Gross Rental Yield: 12.12%
- Total Number of Airbnb Listings: 94
- Best Number of Bedrooms: 1 bedroom
- Median Property Price (1 bedroom): $239,000
- Airbnb Annual Revenue: $37,685
- Gross Rental Yield: 15.77%
- Number of Airbnb Listings: 695
- Best Number of Bedrooms: 1 bedroom
- Median Property Price (1 bedroom): $410,000
- Airbnb Annual Revenue: $36,529
- Gross Rental Yield: 8.91%
- Number of Airbnb Listings: 862
- Best Number of Bedrooms: 2 bedrooms
- Median Property Price (2 bedrooms): $399,000
- Airbnb Annual Revenue: $34,421
- Gross Rental Yield: 8.63%
Source: Airbtics Dashboard
Boosting Your Return on Investment: How to Find Lucrative Airbnb Markets?
It might take a lot of time to identify viable rental markets, and we understand how valuable the investor’s time is. For this reason, it’s a great idea to make use of the advanced resources available to property investors to hasten this process.
On top of that, you should also consider visiting real estate forums or doing a throughout research in search engines to find out which locations are drawing the investors’ attention in specific countries. This will also help you to sort your list and have a clear idea of which cities to focus on. Plus, we encourage investors like you to make use of analytics tools to find profitable markets to invest in Airbnb, particularly those that can provide dynamic data.
Imagine exploring a city while getting useful info that can make things easier for you, it sounds like a dream come true, right? It’s possible with Airbtics Dashboard since you can get a reliable dataset that will show you metrics like the average revenue, occupancy rates, nightly rates, and seasonality, among others.
But don’t take just our word for it, go ahead and take a look at Simon, an Airbtics customer, who was led to a new Airbnb market that generated more profitability than his previous one!
But, it can happen that your target area is not appearing in the search results, but don’t worry! You can easily create your own custom market.
Now, that you have a better view of your target market, go ahead and play around with the filters and find the results that fit your needs. You can use filters to find out what type of property offers the most attractive profit in your preferred area.
The best part of using dynamic data is that by moving and zooming in and out of your map, the data will also change accordingly!
This process can now be repeated until you decide what type of property would be a good investment in your target city or neighborhood. Compare data between different property types and you find out the option that suits you the best!
Maximizing Real Estate Investment Potential in New Jersey’s Dynamic Market
In summary, listing rental properties on platforms like Airbnb presents a fantastic opportunity for investors in New Jersey to achieve a favorable return on their investment. Given New Jersey’s robust tourism sector, high rental demand, and strong economy, it stands as an attractive destination for investors seeking positive cash flow. However, investors with a limited budget may need to explore different alternatives as the real estate market isn’t as affordable as in other states.
Identifying the best places to buy a rental property in New Jersey is the first step in this investment venture. But you should continue your research because it’s always important to analyze all metrics carefully. Make use of advanced analytics tools to boost your earnings! Check our Airbnb Analytics Dashboard and stand among your competitors now!
Deeper STR Insights. Broader Investment Opportunities.
Want to go deeper, broader, and faster? Supercharge your Airbnb Investment by accessing the most in-depth Airbnb & real estate insights with our exclusive STR report.
- Vital vacation rental data from 50 Markets – Airbnb Occupancy Rate, ADR, Revenue, and Listings! Access 2-year data from June 2021 to June 2023.
- Uncover 5-year real estate investability metrics for 50 markets including population, property prices, income levels, Google travel interest, crime, and unemployment trends 2017 - 2021)!
- All yours in 3 business days!
Short-Term Rental Data
Short-Term Rental Data
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