It’s no secret that with the housing market plummeting after the economic crisis, there has been a rising demand for apartments and other rental properties. Apartment buildings nationwide have been experiencing record occupancy rates, leaving property managers with little need for the leasing and marketing services they usually implement, that take up a lot of their valuable monetary resources.
New Jersey is no exception from the rental boom. According to an article published on NorthJersey.com, there is a large amount of development in the works and existing properties are able to offer top prices. In the commercial real estate market, the multifamily residential rental market is hot right now. The article, published in September of this year, claims that New Jersey State’s builders are on track to start the largest number of rental homes since 2006, before the recession hit.
Some developers and housing experts are wondering if and where this new found rental housing “bubble” will burst. However, others such as commercial real estate brokers Cushman & Wakefield of New Jersey Inc. claim that just on Hudson River’s Gold Coast alone there are 16,540 residential units either under construction, proposed or in the planning stages. Cushman’s data states that there are 6,000 residential units set for Bergen County.
With the increase in rental properties comes an increase in the need for apartment building construction. This is great news for the New Jersey construction industry; however it’s imperative that they financially protect themselves from the risks they face as a result of this rental market boom. Any new construction projects, in addition to refurbishment or rehab work require NJ Builders Risk Coverage to be properly protected against potential loss.
Tri-State Insurance Agency provides a comprehensive business insurance portfolio, including Builders Risk policies, and construction insurance in Pennsylvania, New Jersey and New York. Give our professionals a call toll-free at 888.990.0526.