Want to buy a new home in Morris County? You'll need seven figures, report says

In Morris County, rental expenses surged last year, whereas the cost of a newly constructed single-family home remained close to the $1 million threshold, even with the state directive to increase construction. affordable housing , the county planning department mentioned in its yearly report.

"The problem of housing affordability persists," says the developer. report released April 11.

The documentation from the county also shows a decline in applications for multifamily developments currently being constructed across North Jersey, as municipalities aim to comply with state mandates. affordable housing obligations Warehouse proposals likewise saw a decrease, indicating an overall weakening in the demand for these types of developments.

Apartment, home prices in Morris County

The median monthly rent for a two-bedroom apartment in Morris County last year was $2,232, the department found. That was 16% higher than the prior year. Last year's county rents were also well above the statewide median asking price of $1,892 , according to Realtor.com.

In 2023, which is the latest year for which data is available, the county reported that the median price for single-family attached homes dropped somewhat to $808,995 from $815,832 in the previous year.

Nevertheless, the median price for a newly constructed single-family house went up by 4%, reaching $993,190.

While a surge of development This has raised worries regarding heightened traffic congestion and overburdened educational institutions and public services. However, the county discovered that new project submissions have dropped. Specifically, in 2024, the planning board handled requests for 923 residential units across 16 multi-family developments, which is fewer than the previous year’s total of 1,022 units spread across 11 applications.

There's plenty of housing available, but is it within budget?

Many towns lag in meeting their affordable housing obligations. Nevertheless , The study noted that "a majority of the suggested projects consist of high-end rental units with anticipated rents surpassing the county-wide median." The research also revealed that approximately half of Morris County’s renters dedicated 30% or more of their household earnings toward housing costs over the past year.

The ongoing market demand leads us to anticipate that the rise in rent prices will persist," noted the county planners from the Morris County Planning Board. They further explained, "Although multifamily developments were previously seen as an affordable choice compared to standalone homes, current high-end rentals now come with price tags similar to those for a three-bedroom independent house’s monthly mortgage payments.

Developers stand to gain more financially from leasing or offloading properties at current market prices. state rules Offering an incentive to builders during negotiations for variances and rezoning applications if they allocate approximately 15-20% of units as designated affordable housing.

The limited number of affordable units has severely failed to meet demand According to housing advocates, simultaneously, opposition from locals towards new developments has spurred over two dozen municipalities to contest the state’s housing requirements in court, including a federal lawsuit filed last week.

Warehouse applications plunge

Applications for warehouse space saw a substantial drop in 2024, marking their second consecutive year of decrease, as reported by the county. The peak in warehouse proposals occurred in 2022, which included an application to construct 2.5 million square feet at the location where the former facility once stood. Hercules munitions plant In Roxbury, that strategy was abandoned following over a year of presentations to the Roxbury Planning Board, which failed to secure the necessary rezoning approvals.

In total, warehouse spaces decreased from slightly more than 2 million square feet in 2023 to around 726,000 square feet last year. The majority of these developments took place in Parsippany, where they have been striving to find equilibrium between residential and commercial initiatives during their redevelopment process. surplus of empty workspaces .

County planners noted that a comparable pattern persisted through 2024 and extended to additional neglected business zones. Particularly within the Campus Drive and Sylvan Way office complex in Parsippany, work commenced on earlier approved constructions in the vicinity, along with three significant renovation initiatives being proposed and examined by the Morris County Planning Board.

The warehouse space, as noted by Parsippany officials, does not lead to an uptick in student enrollment for public schools. However, opponents within the township continue to voice concerns about this development. increase in large-truck activity on neighborhood streets .

The county report additionally mentioned that warehouse construction is ongoing at the location where the previous facility once stood. BASF headquarters Located alongside Route 80 in Mount Olive, this significant redevelopment project within the county aims to substitute the previously torn down 930,000-square-foot structure with a new 585,000-square-foot warehousing space.

A different developer is constructing an additional 200,000-square-foot warehouse in the vicinity.

Vacancy rates for warehouses in New Jersey Reached their peak in the past ten years last year, largely due to an increase in new building projects and concerns about the effects of President Donald Trump's proposed tariffs. In February, David Greek, a managing partner at developer Greek Real Estate, informed The Record and NorthJersey.com that numerous prospective warehouse renters have either halted or delayed their growth strategies.

Development magnets

Throughout every category of development, the county Planning Board processed 244 applications last year, which is notably fewer compared to what was seen in 2023, according to the report. Parsippany topped all municipalities in submissions with 34 applications, trailed by Montville with 21 and Long Hill with 20.

The full report can be seen on the Morris County website .

The article initially appeared in the Morristown Daily Record. If you're looking to purchase a new home in Morris County, be prepared to shell out seven figures, according to the report.