Submitted by chazthetic t3_118drdc in jerseycity

We moved to Jersey City and love it here. In the last few years, we've seen our rents increase more than 10% a year. That far outpaces inflation. Rents keep increasing insane amounts, even with more and more apartment buildings being built. And to top it we live in a nearly 20 year old building.

Anyone else seeing huge increases in their lease renewals?

34

Comments

You must log in or register to comment.

DirectorBeneficial48 t1_j9gknaw wrote

> I don't see how this is sustainable long term.

It isn't. General strike/rent strike when?

16

PhilipRobertson t1_j9gm2r2 wrote

10% was roughly where we were able to negotiate down to after several years of being “invited” to sign a new lease every year or two in a high rise. Eventually became aware that the high rises were not a home and were merely a number of a form and left. It’s not sustainable long term and probably wasn’t designed that way. Unfortunately. Good luck.

42

sutisuc t1_j9gmeha wrote

Jersey city does indeed seem to be a counterpoint that nonstop new building does not lower rental prices in a meaningful way.

24

micmaher99 t1_j9gmgiq wrote

Search the sub, this is asked 5x a week for the last year

6

chanceTheCatter t1_j9gn7w9 wrote

I have had reasonable increases with KRE. 4% increase two years in a row

13

pixel_of_moral_decay t1_j9gnihk wrote

That’s slightly below inflation actually.

Right now inflation nationwide is about 8%. But for service/labor it’s substantially more, especially in NJ where minimum wage is going up on a predefined schedule.

Then you’ve got taxes.

The costs to operate a building went up above 10% due to labor alone.

10% means your landlord is taking a smaller percentage profit. There’s no other way to look at it.

6

BromioKalen t1_j9gnr5z wrote

I just received a 15% increase in Hilltop. It was 6% last year. I keep sucking it up because I don't want to move, but eventually it just won't be worth it anymore.

15

EyesOnImprovement t1_j9go1bo wrote

"Forsooth, thee gentrifier is gentrify'd."
William Shakespeare, probably.

7

bodhipooh t1_j9gocuo wrote

What an odd take... the *correct* take is that we are NOT building enough. For all that "nonstop new building" people love to bemoan and criticize, we are getting MORE people than actual housing units, which is why prices DON'T come down or remain stable. Just to illustrate the issue, consider this: in 2000, it was estimated that JC's population was 240K. By 2010, it was estimated to be 247K (an increase of ~3% over 10 years) and then by 2020 it was estimated to be 292K (a increase of over 18% over 10 years, or 6x the growth of the previous decade). In the same period, the number of housing units did not grow nearly enough, so our vacancy rate of available housing units actually went down, demonstrating that we are not keeping up and instead are facing a market that is further constrained.

27

bodhipooh t1_j9gok50 wrote

> but it's indicative of a much larger problem

But... It is not. You simply feel that way because you are struggling to keep up, but that's the way an unregulated market is supposed to work. You may not be able to afford it, but others will. Since we are not building enough units to absorb the population growth, we will continue to see increases in housing costs. Until population growth slows down, or some other shock to the system comes (like with the pandemic) we will continue to see higher rents.

9

ShingekiTitan t1_j9gp1ht wrote

Move to theBlvd collection, u can negotiate rent increase, I used to increase it like 50-70$ every year with 1.5-2 year leases

1

Nuplex t1_j9gszyg wrote

How many times does it need to be said that building housing reduces the rate at which prices increase. It does not guarantee lower prices. Without new housing rent would just shoot up even faster.

A great analogy I heard: Saying building more housing doesn't help is like free-falling from an airplane and complaining the parachute hasn't completely stopped you mid-air.

30

Nuplex t1_j9gtkau wrote

Not sure what your rent went from and to but the market has definitely slowed down and I've even seen some of the crazy prices come down slightly. You should look around and see if there are available units elsewhere more affordable for you. They definitely exist. Otherwise unfortunately 10% isn't good but last year people were seeing crazy 15%-20% increases. It's not good but 10% is likely a sign of your management being bold but not as bold as they would have been last year, simply because they can't.

4

Happyjee t1_j9gtr9p wrote

One of the main culprit for rent increase, unfortunately is that the property taxes in Jersey City almost doubled last year

53

Akmaster87 t1_j9gxxrx wrote

Ding ding ding

The big real estate companies are still gouging renters, but let’s not overlook property taxes as a culprit too. Especially for regular landlords who need to keep up with their now doubled taxes.

36

pmax2 t1_j9gzqma wrote

Refuse to pay it. Unconscionable rent increase is not allowed by law

−15

No-Mycologist-9935 t1_j9h0as3 wrote

Thanks, School Board! Next year it'll be another 30% in property tax, voted in by the ''I'm such a good person and I want everyone to know it'' crowd.

0

Nuplex t1_j9h1s1y wrote

I guess they are technically correct, there is plenty of housing in the country.... if you just add it all together irrelevant of location and quality. Housing crisis is specifically because there isn't enough housing where the jobs are and where people generally want to live thats a reasonable commuting distance.


Also the day people realize that housing cannot sustainably appreciate forever (for numerous reasons) as an asset there probably will be an enormous crash and cultural shift of housing as an investment to housing as a need (see: Japan). We are nowhere close to that yet sadly. Probably take another 20 or so years.

12

jlmends t1_j9hd2po wrote

Ours went up 44% at 70 greene and we moved. Worst part is I spoke to the new tenant and he said when he applied there was no increase- so he’s paying what we were paying before they increased it 44% and we had to move … smh

26

FinalIntern8888 t1_j9hd5uj wrote

It’s not sustainable. It’s not worth it to live downtown if that’s what’s happening.

4

Jctexan t1_j9heexq wrote

This is my understanding based, too, especially regarding high-rise buildings. It can drive the overall values of an area up, while simultaneously helping to keep surrounding rents low by adding more supply. So there’s some give and take.

This is an interesting watch:

https://youtu.be/aKwkMZbeeGo

2

Tadpole_Southern t1_j9hfk2z wrote

Believe it or not but renters have more leverage now than any other time in the last 24 months. Did you try to negotiate? Most landlords don’t like vacancy

2

GoHuskies1984 t1_j9hi5b2 wrote

Not trying to fight but anyone buying expensive property in hot neighborhoods already knows not to count on huge appreciation.

People buy in popular neighborhoods because they want to live there + build equity while doing so.

A collapse is not happening unless there are major external factors.

6

ClockParking t1_j9hjp4u wrote

I moved to JC from West New York because my rent increased 40%. I wish it only went up 10 like it did for you LOL

3

Miringanes t1_j9hmm35 wrote

Unless you’re levered to the tits… but yes, my wife and I bought in a pretty hot area and there will be some appreciation, but not like it has been. We bought where we did because of the charming housing stock and gas street lamps, commute time to Manhattan, and like minded people living in the town.

2

user3183 t1_j9hqo9v wrote

There’s no rent control ?

−2

objectimpermanence t1_j9hqxid wrote

This just highlights the fact that landlords will generally seek to charge the maximum amount they can get in a particular market.

It doesn’t matter what happens with their property tax bill. They will seek the maximum rent possible given prevailing market forces.

If a similar tax increase happened in a market like Detroit, many landlords there would not be able to recoup the cost simply because their housing market is the opposite of ours in terms of supply/demand factors.

10

objectimpermanence t1_j9hsr9i wrote

Yep, I just saw that Haus 25 is offering 1 month free now, which I’m pretty sure they weren’t doing just a few months ago.

It’s a sign the market is beginning to soften even if the advertised sticker price hasn’t gone down yet.

2

Cuprunnethover2022 t1_j9htctk wrote

The approval of the huge new school complex in Bergen Lafayette is going to mean another huge tax hike. The school is definitely needed, and I'm all about a highly educated population, but it's going to be rough on the renters and homeowners here.

1

CoochieCrook713 t1_j9hu05v wrote

That's what I was going to ask. I'm new to Jersey City (approaching 1 year of occupancy) and I thought Jersey City, as a municipality, had a rent increase cap of 4%. If so, does it only apply to specific types of properties?

1

the_running_stache t1_j9hw8ow wrote

That’s what sucks about so many of the LUXIRY buildings in Downtown JC! (I don’t know if other neighborhoods/cities.) The buildings often advertise great deals - free amenities, free 1-2 months’ rent upon signing, etc., but they offer those only to “new” tenants, not to existing ones.

That is so stupid and counterproductive, it seems. If you have had a good tenant all along, who paid rent on time and was never a problem (loud music, smoking in hallways, etc.), why wouldn’t you want that tenant to continue instead of risking it with a newer tenant you have little idea about?! Also, with a new tenant, you need to spend money on professional deep cleaning, repainting, etc., and it just seems that continuing with the existing tenant is cost-effective.

But still, they never offer such deals to existing tenants. It always boggles my mind.

12

nadalist t1_j9i2tty wrote

Yeah I'm just moving back to a walk-up. Had my first year at one of the supposedly better "luxury" doorman buildings and it just isn't worth it to me. My rent will be halved and my savings will go up, double victory.

1

JeromePowellAdmirer t1_j9i2xhr wrote

Have you considered that what Jersey City is building is not enough to serve a metro of 20 million people? And yes, that is the market for Jersey City housing, not the 290k already here.

No one on the New York side is building anywhere close to enough. All that demand gets added on to Jersey City. Nothing Jersey City can do to fix it. New York has to fix it. If Jersey City stopped building, people would simply bid up the old houses, as happened in San Francisco and most of Manhattan.

12

1_Said_What_1_Said t1_j9i4yxi wrote

I moved here from the city because rent was way to high there no matter where I lived. Got myself a place I’d be paying double in the city if it were there (high rise, rooftop, gym, personal washer and dryer) Rent went up last year and will only go up again I’m sure. So far I’m managing but at some point I won’t be able to save if I pay these prices. The rent here is basically the same as living in the city. Ive been considering moving to Newark but even those prices I hear are going up, but still currently low enough that I’d Live comfortably for a few years.

4

orb_king t1_j9i6gte wrote

yeah they gotta have a solid scam where they make more money turning over tenants than keeping them. maybe fees, maybe security deposits, or maybe something as dumb as commissions on "new" tenants for sales people who happen to also work in the building.

10

fulanita_de_tal t1_j9id2ji wrote

I’ve been here about 8 years and have seen 1-5% increases every time I’ve resigned. In 2 different luxury buildings. Are you using the base as a pro-rated first time tenant or a COVID deal?

2

Accomplished_Day2991 t1_j9ig3im wrote

These buildings don’t want you to stay. It’s in any city you move to a fancy luxury building they want you there for two years max. It’s their model. My guess is if you stay for awhile you become protected. There are great homes in other areas of JC, might not be as fancy but w the extra money you save buying you can get a car and be to those areas in 10 min. And have more space. This is a great city w many great areas. Bet on yourself and buy something, make it your own and continue to make this a great city and screw these robbers.

1

jersey-city-park t1_j9j45sf wrote

> In the last few years, we've seen our rents increase more than 10% a year. That far outpaces inflation.

Only if you believe the number the government is telling you, which is allegedly 6-7% last year. The real inflation rate is probably around 15% or higher. -80% of US dollars in circulation were printed from 2020 onwards. There is absolutely no way inflation is just 6%

0

DeepFriedAsses t1_j9jebyi wrote

Can’t have landlords possibly “earning” a penny less! Let’s not pretend that every landlord isn’t seeking to milk tenants out of the highest possible rent amount. The main culprit is and always be a system that allows greedy people to hoard housing

4

fulanita_de_tal t1_j9jgy0e wrote

Man idk, judging from all the comments I must be part of a very small minority who got extremely lucky. That said, of the 7 times we’ve signed or re-signed a lease, 3x were 2-year terms and most recent was a 14mo term. I guess that’s probably helped a lot.

2

itgtg313 t1_j9jhoay wrote

Where are people being priced out moving to?

2

russokumo t1_j9jk8mb wrote

Reason is moving costs. They know moving costs money, so if they are able to raise rent just enough to be competitive with moving costs, most people will stay put. Also yieldstar software is definitely leading to collusion in jersey city + Hoboken in particular.

7

russokumo t1_j9jldk2 wrote

If you could charge more for a product you sell, wouldn't you?

I moved to the NJ side of the Hudson specifically because my income became high enough that the ~4% city tax for NYC became a non trivial amount of money. I suspect many others did the same especially during covid when no one has to commute into the office. This gentrification effect is now at the snowballing phase for Jersey City where soon our rents east of Grove Street will rival the West Village in NYC.

Over a 30 year period "luxury" apartments should start trickling down to more affordable prices as new luxury buildings overtake them. But the NYC area is so insane that you can have old buildings like Grove Pointe continue to charge rents comparable to new builds in the area.

My biggest regret financially for rent was not buying property in Q3 2020 when prices were down (became a digital nomad instead since I thought NYC would become a crime and germ filled cesspool there was a really nice 1BR in Brooklyn that has now gone up 20%) or signing a longer term lease in Q1 2021 when rental market was still soft.

2

chazthetic OP t1_j9jtr82 wrote

I regret not buying as well. I agree with you about the trajectory of JC, but the unfortunate truth is the price increases right now feel like price gouging, the same kinds of price gouging we saw with groceries, gas, etc over the last few years.

I doubt the rising costs of an apartment were solely due to the costs of managing a building, and rather the desire to simply squeeze more and more out of the customers.

3

russokumo t1_j9jxcp8 wrote

Alas this is how capitalism works. You squeeze and get higher margins anywhere you can.

Interest rates were the other huge driver. Many other portfolio buildings for these owners are commercial properties on floating rate debt that they are deeply underwater on. So they're probably trying to make up for it where they can.

1

MrNowhere t1_j9jy793 wrote

Water charges which most landlords pay, especially on smaller non 'luxury' buildings, has increased 10 fold as well in the last year.

1

amatski24 t1_j9kgksf wrote

Ours went up 880 dollars from 2650/month to 3530/month….. when we told them we were moving they offered to raise our rent “only” 300/month. We said no out of principal…. Lived on Morris and moving about 10 minutes to a new place

2

FinalIntern8888 t1_j9ptj08 wrote

The whole area isn’t gentrifying that quickly, rent is still super affordable and you’re still only 20 minutes from JSQ or a short shot to downtown. I’m nearby and my rent also only went up 5%

1