Trends & NewsJersey City Real Estate Market Trends for 2020 by Yassine Ugazu December 10, 2019November 20, 2019 by Yassine Ugazu December 10, 2019November 20, 2019Jersey City has always been an interesting location for all sorts of real estate investments. The proximity to New York City coupled with the strong economy of the city has made Jersey City the go-to option for real estate investors who are seeking to escape the expensive markets of the five NYC boroughs. But is investing in the Jersey City real estate market a good idea in 2020? What are some of the Jersey City real estate market trends that are likely to shape next year’s housing market? And where should you be looking for the best Jersey City real estate rentals? This article will answer these questions and provide you with an in-depth overview of the Jersey City housing market 2020.Jersey City Real Estate Market 2020: 5 TrendsBuying a Jersey City investment property offers a plethora of advantages. However, the relatively low profile of the city has kept the local housing market under the radar for years. Here are the expected trends for next year which make a great case for why you should consider investing in the Jersey City real estate market.1- The city will continue to benefit from its proximity to New York CityAs we mentioned above, the fact that Jersey City is part of the country’s largest metro area cannot be overstated. New York boasts one of the strongest economies in the US and is home to a myriad of industries that include everything from high finance and IT to mass media and health care. Moreover, the area’s population density is extremely high and the influx of newcomers doesn’t seem to be stopping anytime soon. These trends are beneficial to the Jersey City real estate market since they guarantee a consistent stream of buyers and renters who are fleeing the high prices of New York.2- Jersey City’s economy will remain strongBesides benefiting from the trickle-down effect that comes from New York, Jersey City’s economy is strong in its own right and is forecast to remain so in 2020. Thanks to the Port of New York and New Jersey, there is no shortage of logistics jobs in the city. Additionally, an increasing number of financial institutions and trading firms have opened up offices in the area. The city’s good economy is also reflected in its low employment rate relative to the state average. Such a strong economy makes it one of the best places to invest in real estate for 2020.3- Real estate appreciation rates will be high Regardless of the real estate investment strategy that you are planning to implement, a high appreciation rate is always welcomed. The increased demand for all types of rental properties has lead to a consistent rise in Jersey City house prices. In fact, the current appreciation rate stands at 10% in the downtown area, which is substantially higher than the national average. In 2020, Zillow predicts an appreciation of 2.3%. Needless to say, making a Jersey City real estate investment is the most effective way to profit from this trend.Related: 5 Best Cities for Real Estate Appreciation in 20204- The Jersey City real estate market will remain landlord-friendly in 2020Dealing with issues involving tenants is one of the most challenging tasks of rental property management. Minor disputes can sometimes escalate into stressful and expensive legal battles that drag on for years. As a landlord, you especially don’t want to deal with these situations in a jurisdiction that always favors the tenant. While New Jersey is not the most landlord-friendly state in the country, it is far more lenient with landlords than New York. The perfect example of this is the eviction process that is noticeably faster and less complex in New Jersey.Despite the relatively high real estate taxes, the pros of investing in the Jersey City real estate market more than offset the cons.Related: Invest in Real Estate in the 5 Most Landlord Friendly States 5. Jersey City Airbnb laws will be strictIn the past few years, the Jersey City real estate market provided a lax regulatory environment for short-term rentals. However, amid mounting pressure from various unions and special interest groups, a shift began to unfold. While the new Airbnb regulations don’t outright outlaw short-term rentals, they impose more stringent terms on those who operate short-term Jersey City rental properties. Here are the main tenets of the new Airbnb Jersey City regulations for 2020:Non-owner occupied rentals can be rented out for a maximum of 60 days per yearTenants are not allowed to rent out a unitThe owner or the operator must be present in any short-term rental that has more than four unitsThe owner must apply for a permit before renting out a unit Find a Profitable Airbnb Investment PropertyLearn More: Airbnb Jersey City Faces New Strict Laws in 2020Jersey City Housing Market 2020 DataHeading into 2020, the Jersey City real estate market will continue to be fairly competitive. As for whether it is a buyer’s market or a seller’s market, the current dynamics seem to favor sellers. Still, a real estate investor can find a good deal in this market. Let’s take a look at some basic data for the Jersey City real estate market as provided by Mashvisor’s investment property calculator.Median Property Price: $682,616Price per Square Foot: $571Price-to-Rent Ratio: 25Traditional Rental Income: $2,247Airbnb Rental Income: $2,935Traditional Cash on Cash Return: 0.5%Airbnb Cash on Cash Return: 1.0%Airbnb Occupancy Rate: 68.2%It is important to note that city real estate data can be low due to the fact that it covers a wide range of properties. So it’s best to take a look at data for neighborhoods in the city as well as the data for individual investment properties. You can do all of this easily with Mashvisor’s tools.Data for the Best Neighborhoods in the Jersey City Real Estate MarketBergen-LafayetteMedian Property Price: $449,883Price per Square Foot: $188Price-to-Rent Ratio: 20Traditional Rental Income: $1,843Airbnb Rental Income: $1,959Traditional Cash on Cash Return: 1.4%Airbnb Cash on Cash Return: 3.9%Airbnb Occupancy Rate: 71.1%GreenvilleMedian Property Price: $411,724Price per Square Foot: $269Price-to-Rent Ratio: 20Traditional Rental Income: $1,674Airbnb Rental Income: $2,335Traditional Cash on Cash Return: 1.1%Airbnb Cash on Cash Return: 2.6%Airbnb Occupancy Rate: 71.5%Hackensack RiverfrontMedian Property Price: $451,644Price per Square Foot: $280Price-to-Rent Ratio: 16Traditional Rental Income: $2,313Airbnb Rental Income: $2,408Traditional Cash on Cash Return: 1.4%Airbnb Cash on Cash Return: 1.4%Airbnb Occupancy Rate: 73.3%The Bottom Line Despite lacking the cache that comes with being a New York City resident, the Jersey City real estate market is rapidly becoming the hottest market in the area. The Jersey City NJ real estate market is the ideal option for real estate investors who are looking for a profitable and more affordable alternative to the expensive big city markets. Get started right away and use our Property Finder to identify Jersey City homes for sale right now!To start looking for Jersey City real estate for sale, click here. Start Your Investment Property Search! START FREE TRIAL AirbnbAirbnb RegulationsJersey City NJNeighborhoodTraditional 0FacebookTwitterGoogle +PinterestLinkedin Yassine UgazuYassine is a versatile content writer who enjoys crafting compelling copies and articles about the various facets of real estate. Previous Post How Do Residential Income Properties Work? Next Post What Makes a Good Property Manager? Related Posts Interested in Multi Family Investments? Keep These Trends in Mind How has homebuying changed over the years? 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