New Jersey Struggles to Build Affordable Housing as Rents Soar

Study finds just 6.5% of new apartments in the state are fully affordable, far below national average

Published on Feb. 27, 2026

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A new study by RentCafe.com reveals a deepening affordable housing crisis in New Jersey, where only 3,901 out of 60,161 new apartments built between 2020 and 2024 were considered fully affordable - just 6.5% of new construction, far below the national average of 12.6%. With average rents for a two-bedroom apartment exceeding $2,400 per month, New Jersey towns will need to rapidly build more affordable units to meet state-mandated 'fair share' requirements by 2035.

Why it matters

The lack of affordable housing construction in New Jersey is exacerbating the state's housing affordability crisis, pricing out low- and moderate-income residents. The Mount Laurel Doctrine mandates that each community must allow for its 'fair share' of affordable housing, but many towns are struggling to meet these requirements, leading to legal battles and concerns that the rules primarily benefit developers rather than residents.

The details

The RentCafe.com study found that while the rest of the nation built nearly 310,000 income-restricted apartments between 2020 and 2024, accounting for 12.6% of new construction, New Jersey only built 3,901 affordable units out of 60,161 total - just 6.5% of new apartments. In 2024, fewer than 600 affordable units were built in New Jersey, the slowest rate in the five-year period studied. In contrast, New York City built around 32% of its new construction as fully affordable housing, making it the second-largest builder of these units nationwide.

  • Between 2020 and 2024, New Jersey built 60,161 new apartment units.
  • Only 3,901 of those apartments, or 6.5%, were considered fully affordable.
  • In 2024, fewer than 600 affordable apartment units were built in New Jersey, the slowest rate in the five-year period.

The players

RentCafe.com

A real estate data and analytics company that conducted the study on affordable housing construction in New Jersey.

Mount Laurel Doctrine

A legal doctrine that mandates each New Jersey community must allow for its 'fair share' of affordable housing by 2035.

Mike Ghassali

The mayor of Montvale, a town of 3,000 homes, who led a challenge against the affordable housing mandates, arguing they benefit developers more than residents.

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What they’re saying

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

What’s next

The U.S. Supreme Court has rejected a request for emergency action from Montvale's mayor regarding the affordable housing mandates, meaning the town and over 30 others in New Jersey will need to rapidly build more affordable units to meet their 'fair share' requirements by 2035.

The takeaway

New Jersey's failure to build sufficient affordable housing has exacerbated the state's housing affordability crisis, with average rents for a two-bedroom apartment exceeding $2,400 per month. While state law requires communities to allow for their 'fair share' of affordable units, many towns are struggling to meet these mandates, leading to legal battles and concerns that the rules primarily benefit developers rather than residents in need of budget-friendly housing options.