Top LocationsJersey City Real Estate Market: Should You Invest Here in 2019? by Hamza Abdul-Samad March 22, 2019March 21, 2019 by Hamza Abdul-Samad March 22, 2019March 21, 20192019 is seeing its fair share of successful real estate markets in many of the country’s regions. One of the top performing markets in the Mid-Atlantic region during the year is the subject of this blog: the Jersey City real estate market. Is investing in rental properties in the city a good investment? What does Jersey City’s housing market data look like? Is Airbnb legal in Jersey City? Keep reading to get answers to these questions!Related: Location, Location, Location: What Makes for the Best Place to Invest in Real Estate? Jersey City Real Estate Market: Traditional Real Estate Market TrendsIncreased DemandThere are many trends contributing to the success of the Jersey City real estate market. When it comes to its long-term rentals, increased demand is at the forefront. According to Mashvisor’s housing market data, which you can learn more about by clicking here, the price-to-rent ratio of Jersey City is 24.6. This indicates that buying property in Jersey City is more expensive than renting. The net result is more renters than buyers, a definite advantage for a real estate investor. The Jersey City real estate market has a large tenant pool, with roughly 73% of its residents renting an investment property. Multi-family investment properties, in particular, are very common, constituting 85% of the city’s real estate properties according to NeighborhoodScout.Demographic PushOne of the factors driving the city’s increased demand is an increase in the population. Since 2000, the city’s population has had a growth of 10.78%. Many of the newcomers are leaving New York’s overpriced cost of living in favor of an affordable alternative that is still within proximity to the region. This migration trend doesn’t seem to be slowing down anytime soon, further bolstering the long-term rentals in the Jersey City real estate market.High Rental Income and AppreciationTo add icing to the cake, Jersey City is also a very profitable location for traditional real estate investors. The average traditional rental income of a Jersey City real estate investment, according to Mashvisor, is $2,245.Jersey City houses for sale also have high appreciation rates. Jersey City’s estimated 2019 price growth is 3%, more than the national 2.2%. The Jersey City housing market has been in the national top 20 percent in real estate appreciation over the last decade with 31.4% based on data from NeighborhoodScout.Related: The Top 6 Strategies to Boost Your Rental Income as a Real Estate InvestorBest Neighborhoods for Traditional RentalsSo, you might be wondering where to buy investment property for traditional investing in Jersey City to take advantage of the above-mentioned factors. Luckily, Mashvisor’s heatmap has the answer. The best neighborhoods to buy traditional long-term rentals in Jersey City are Liberty Park and Hackensack Riverpark.Liberty ParkMedian Property Price: $532,863Price Per Square Foot: $329Price-to-Rent Ratio: 14TraditionalRental Income: $3,241Cap Rate / Cash on Cash Return: 2%Hackensack RiverparkMedian Property Price: $576,633Price Per Square Foot: $256Price-to-Rent Ratio: 19TraditionalRental Income: $2,529Cap Rate / Cash on Cash Return: 1%Is Airbnb Legal in Jersey City?Before we discuss Jersey City short-term rentals, we need to address an important question: Is Airbnb legal in Jersey City? The answer is yes! One of the city’s most notable Airbnb laws is a 6.625% sales tax and a 5% hotel occupancy tax. Before deciding to purchase an Airbnb Jersey City real estate investment, be sure to be aware of the other important Airbnb regulations in the city.Jersey City Real Estate Market: Airbnb Real Estate Market TrendsCultural Events and SitesLike in many markets, the Airbnb Jersey City real estate market thrives off its cultural events and sites, attracting tourists from across the country. The city’s notable landmarks, like the Statue of Liberty National Monument, museums, like the Afro-American Historical and Cultural Society Museum, and its events, like the Shakespeare Festival, are huge catalysts for Airbnb Jersey City’s success.Local Airbnb ComfortJersey City sits at a comfortable position due to its Airbnb legalization. Investing in rental properties for Airbnb is illegal in nearby NYC. This has made Jersey City a destination for those wanting to visit New York City, due to the two cities’ close proximity. As a result, Jersey City short-term rentals have become plentiful and profitable.Profitability And of course, investing in rental properties for Airbnb is very lucrative in Jersey City. The city’s average rental income is $2,866 and the average return on investment in many of its neighborhoods, such as the ones to be mentioned, is very high. Airbnb is a more profitable investment strategy for a Jersey City real estate investment.Related: What Kind of Airbnb Occupancy Rate Can You Expect?Best Neighborhoods for Airbnb RentalsAccording to Mashvisor, the best neighborhoods to buy Airbnb rentals in the Jersey City real estate market are Lincoln Park and The Heights.Lincoln ParkMedian Property Price: $581,475Price-to-Rent Ratio: 26AirbnbRental Income: $3,785Cap Rate / Cash on Cash Return: 3%Occupancy Rate: 63%The HeightsMedian Property Price: $654,590Price Per Square Foot: $500Price-to-Rent Ratio: 29AirbnbRental Income: $3,254Cap Rate / Cash on Cash Return: 2%Occupancy Rate: 76%Jersey City Real Estate Market: Best Neighborhoods for Traditional and AirbnbSome neighborhoods in the Jersey City real estate market are excellent for both traditional and Airbnb investing. The best neighborhoods for buying property in Jersey City for either strategy are Bergen-Lafayette and West Side.Bergen-Lafayette Median Property Price: $454,800Price-to-Rent Ratio: 20Price Per Square Foot: $296TraditionalRental Income: $1,914Cap Rate / Cash on Cash Return: 1%AirbnbRental Income: $2,769Cap Rate / Cash on Cash Return: 3%Occupancy Rate: 71%West SideMedian Property Price: $366,837Price-to-Rent Ratio: 18Price Per Square Foot: $260TraditionalRental Income: $1,703Cap Rate / Cash on Cash Return: 1%AirbnbRental Income: $2,210Cap Rate / Cash on Cash Return: 2%Occupancy Rate: 63%All in all, the Jersey City real estate market is a market many investors should consider for investing in rental properties. To find Jersey City houses for sale, and investment properties for sale all around the US, click here to start your 14-day free trial with Mashvisor! Start Your Investment Property Search! START FREE TRIAL AirbnbJersey City NJTraditional 0FacebookTwitterGoogle +PinterestLinkedin Hamza Abdul-SamadHamza is a long-time writer at Mashvisor. With a focus on real estate investing tips, concepts, and top investing locations, he aims to help all aspiring investors who come across his blogs to hit the bank with their investment property. Previous Post Are Vacation Rentals a Good Investment for Beginners? Next Post Residential Property Management: Here’s How to Do It Yourself Related Posts The 7 Best Nashville Neighborhoods to Invest in Real Estate for 2018 The Current Housing Market in the US: Pros and Cons for Investing in Real Estate Minneapolis Housing Market 2019: #1 in the Midwest Real Estate Investing for Beginners: Where to Invest in Real Estate Indianapolis Real Estate Market Trends and Forecast 2020 San Diego Housing Market 2019: 6 Current Trends You Need to Know The Pittsburgh Real Estate Market 2019: Should You Invest Here? 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