New Jersey is experiencing its fastest pace of home construction in decades, particularly in Central Jersey’s commuter rail towns and redevelopment corridors, according to a May 5 report from Rutgers University.
The surge in housing production could mark a turning point for the state’s long-term growth patterns and has important implications for policy discussions about housing supply. The state produced nearly 180,000 housing units between 2020 and 2024, making it the strongest five-year period since the 1980s. If current trends continue, New Jersey could add about 359,300 units during the decade—potentially making this the most productive period for new homes so far this century.
The findings are detailed in “From Farmland to Suburban Front Yards to High Density Frontiers: Housing Production in the Garden State Since 1940,” authored by James W. Hughes, professor and dean emeritus at Rutgers’ Edward J. Bloustein School of Planning and Public Policy, and Connie Hughes. “New Jersey’s housing production roller coaster has been defined by long-term crests and falls since the 1940s,” James Hughes said. “The increase in construction during the 2020s so far suggests a potential turning point that adds important context to ongoing policy discussions about housing supply in New Jersey.”
Growth has concentrated near train stations and downtown cores of Central Jersey cities such as New Brunswick, Elizabeth, Perth Amboy, Somerville, Rahway and others with rail service. The study documents a shift away from farmland-to-subdivision development toward higher-density projects near existing infrastructure—a trend that accelerated during this decade. Much of today’s growth focuses on multifamily or mixed-use buildings rather than single-family subdivisions due to limited land availability and demand tied to transit access.
County-level data show strong but uneven growth across Somerset, Middlesex, Union and Hunterdon counties; all have seen more residential permits issued so far this decade compared with previous periods. However, some areas have experienced recent slowdowns after early peaks.
The building surge comes amid ongoing zoning disputes over affordable housing obligations under New Jersey’s Mount Laurel doctrine. Developers have increasingly used builder’s remedy lawsuits when municipalities are found out of compliance—legal actions that can override local zoning rules for higher-density projects with affordable set-asides.
Despite these gains, questions remain about whether new construction will close longstanding gaps for renters or lower-income households in high-cost markets. “A key question going forward is whether this production uptrend can be sustained or expanded, and whether it will be sufficient to meet growing housing demand in the state,” Connie Hughes said.
According to the official website, the Edward J. Bloustein School of Planning and Public Policy operates as part of Rutgers University—the State University of New Jersey—and focuses on fostering just communities through research centers dedicated to community development, transportation policy and public health initiatives.