Where is apartment rent in Monmouth, Ocean rising? See what's happening in these 10 towns (2024)

Hannah Walden was running out of time.

She had recently graduated from Kennesaw State University in Georgia, her lease was set to expire, and she was moving to New Jersey to be near her father and the New York job market.

So when she learned about a one-bedroom apartment in Keansburg for rent for $1,600, she didn't hesitate: She agreed to sign a lease for $1,750 a month, beating out dozens of other renters.

"I want to say I looked at dozens, borderline hundreds (of apartments) at this point," Walden, 22, said. "But narrowing it down, there were really seven or eight that would work. And only three or four of those were in my price range and close to my family. It was … extremely difficult to find a place within this area,"

Where is apartment rent in Monmouth, Ocean rising? See what's happening in these 10 towns (2)

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Central New Jersey's apartment market remains tight, with rent continuing to outpace inflation. In towns including Eatontown, Toms River and Ocean Township, average rent increased at least 7% from a year ago, according to the real estate company Zillow.

It means landlords continue to have the upper hand in an area where nearly a quarter of renters are considered cost-burdened, according to the National Low Income Housing Coalition advocacy group, meaning they pay more than 30% of their income on rent.

The reasons rent continues to rise:

Demand. From 2019 to 2023, Monmouth County's population rose 3.7%, and Ocean County's population rose 8.5%. And the region's job market has been robust since the pandemic; from February 2020 to March 2024, Middlesex, Monmouth and Ocean County employment has increased 4.7%, higher than the U.S. gain of 3.8%, the Federal Reserve Bank of New York said.
Supply. Housing permits have climbed steadily in Monmouth and Ocean counties since 2019, but the majority have been for single-family homes. In 2022, for example, multifamily permits accounted for less than a quarter of the total, the state reported. The result: Central New Jersey was the 10th-most competitive rental market last year, with nine prospective renters bidding on each apartment, according to RentCafe.
Intangibles. The average interest rate for a 30-year fixed mortgage has climbed from less than 3% in 2020 to above 7% this year, making it more expensive for renters to buy a home. And even if they can afford it, there aren't many homes available.

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"The demand for housing in general is just so high," said Robert Scott, an economics professor at Monmouth University in West Long Branch. "I think a number of those people would be buyers, which would put downward pressure on rent."

Renters continue to face scarce inventory and higher prices. The fair-market rent for a one-bedroom apartment this year is at least $2,000 a month in 15 out of 90 ZIP codes in Monmouth and Ocean counties, according to the U.S. Department of Housing and Urban Development.

By comparison, no neighborhoods had a fair-market rent for a one-bedroom apartment that topped $2,000 a month last year, according to HUD data.

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Where is apartment rent in Monmouth, Ocean rising? See what's happening in these 10 towns (4)

Michael Gruosso, a Realtor with Keller Williams Realty in Shrewsbury, said landlords, who used to charge $1 per square foot for rent, now charge as much as $3 a square foot.

When he listed a 400-square-foot apartment for rent in Keansburg, his phone lit up so fast that he enlisted two other agents to help with the volume.

"It's three of us trying to handle it, and I see it everywhere," Gruosso said. "Anywhere we have a rental, it rents pretty quick — within the first couple of days it hits the market."

Walden wound up with the Keansburg apartment that Gruosso listed, and just in time. A moving truck was on the way from Georgia with all of her belongings. If she didn't get that apartment, she would have been in dire straits.

"This has been one of the most stressful moments of my life, basically," she said. "I graduated and was immediately thrown into trying to find a house within a month and a job. It's been rough."

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How much is rent rising?

Where is apartment rent in Monmouth, Ocean rising? See what's happening in these 10 towns (5)

1. Eatontown

ZIP code: 07724

Average rent April 2024: $2,114

Change from April 2023: 8%

Where is apartment rent in Monmouth, Ocean rising? See what's happening in these 10 towns (6)

2. Toms River

ZIP code: 08753

Average rent April 2024: $2,586

Change from April 2023: 7.8%

3. Ocean Township

ZIP code: 07712

Average rent April 2024: $2,678

Change from April 2023: 7%

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Where is apartment rent in Monmouth, Ocean rising? See what's happening in these 10 towns (7)

4. Long Branch

ZIP code: 07740

Average rent April 2024: $2,933

Change from April 2023: 6.7%

5. Matawan

ZIP code: 07747

Average rent April 2024: $2,482

Change from April 2023: 5.5%

Where is apartment rent in Monmouth, Ocean rising? See what's happening in these 10 towns (8)

6. Manalapan

ZIP code: 07726

Average rent April 2024: $2,331

Change from April 2023: 4.4%

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Where is apartment rent in Monmouth, Ocean rising? See what's happening in these 10 towns (9)

7. Point Pleasant

ZIP code: 08742

Average rent April 2024: $3,076

Change from April 2023: 3.8%

8. Freehold

ZIP code: 07728

Average rent April 2024: $2,733

Change from April 2023: 3.7%

9. Red Bank

ZIP code: 07701

Average rent April 2024: $2,923

Change from April 2023: 3.5%

10. Neptune

ZIP code: 07753

Average rent April 2024: $2,802

Change from April 2023: -1.2%

Michael L. Diamond is a business reporter at the Asbury Park Press who has been writing about the New Jersey economy and health care industry for more than 20 years. He can be reached at mdiamond@gannettnj.com.