Analyzing the Continued Shift from Home Ownership to Rentals Property
April 22, 2019
MONTVILLE, N.J. – According to the U.S. Census Bureau, home ownership fell from 69.4% to 64.2% between 2004 and 2018, with an associated rise in renting households from 31.2% in 2006 to 36.6% in 2016. The National Apartment Association has predicted apartment occupancy rates of 94-95% in 2019 and rent growth of 2-3% on average, with continued strong demand for apartments this year, even with more supply coming online.
Reflecting that shift away from home ownership to renting, New Jersey’s residential rental market is hot, with an explosion of new construction of apartment buildings across the northern and central parts of the state. Among the newest is Summit Court, a luxury apartment community in Union.
Managed by DP Property Management, LLC in Montville, Summit Court is meeting the market demand for more rental units, as well as resident expectations for upscale on-site amenities—the type of amenities that are attracting the millennials and empty nesters fueling New Jersey’s luxury rental market.
“Many younger working adults and older adults who used to own a home want the freedom that comes from renting in a professionally managed building, without the burden of home maintenance and repair, a mortgage or homeowner association dues,” said Nicholas Minoia, founder and principal of DP Property Management, an affiliate of Diversified Properties, LLC.
Minoia noted that rising mortgage interest rates and home prices, coupled with relatively tight housing inventory, are other factors driving the rental trend. And, in a high-property tax state like New Jersey, most people are finding renting to be more desirable, especially in apartment communities that include today’s highly-sought-after amenities such as yoga and fitness studios, smart locks and connected security measures, and charging stations for electric vehicles.
“Millennials expect luxury units with the latest technology, in locations that make for easy commutes, and empty nesters want high-end features that make the transition from house to apartment an easy one,” noted Minoia.” Proximity and easy access to New York City for work or leisure is also something renters desire.”
Summit Court, located at 450 Clermont Terrace in Union, is a master planned rental community, within a mile of NJ Transit’s Union rail station and Kean University, with easy access to major highways. Phase I offers spacious one- and two-bedroom apartments with in-demand, contemporary features such as open-concept kitchens, washer/dryer, large closet and private balconies. The building’s amenities include a well-equipped strength & cardio studio with Peloton® cycles; smart security system; community lounge with Wi-Fi, game area, catering kitchen and gathering space; and a large courtyard with a fire pit, gas grills and outdoor dining areas. Groundbreaking for the clubhouse and pool is scheduled for this spring.
“Our residents can be in midtown Manhattan in 45 minutes by train, so they have the best of all worlds in terms of convenient city access and luxury living,” said Minoia. “As more people choose upscale rentals over home ownership, Summit Court will continue to meet the expectations of discerning renters with amenities that enhance our residents’ lifestyle.”
To learn more about Summit Court, visit www.summitcourtunion.com.
1776 Patriot Way, Union, NJ 07083
Located at 450 Clermont Terrace in Union, N.J., Summit Court is a recently constructed luxury, master planned rental apartment community that offers discerning residents a wide range of amenities within close proximity of New York City. Phase I has one- and two-bedroom units with contemporary features and in-home conveniences such as washer/dryer and stainless kitchen appliances. On-site amenities include a community lounge, strength & cardio center with Peloton® cycles, furnished courtyard with fire pit, grills and outdoor dining, keyless entry and smart technology, and Luxer One secure package service. The planned clubhouse will offer activity rooms, private dining/entertaining spaces, outdoor pool and co-work space.
Summit Court is one mile from Kean University and NJ Transit’s Union rail station with service to Newark and New York City; Newark-Liberty International Airport is 10 minutes away. Residents have easy access to the Garden State Parkway, I-78, Route 22 and major local thoroughfares with town services, shopping and dining, golf courses and public parks. The property is managed by DP Property Management, LLC in Montville, N.J., an affiliate of Diversified Properties, LLC, headed by principal and founder, Nicholas Minoia. More information is at www.summitcourtunion.com.
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