It takes a lot to stay on top, as any broker anywhere will tell you. And New Jersey — perhaps in particular — has its own set of challenges, as any local broker will surely say.
This year, President Trump’s much-squawked-about tax law is top of mind for everyone in the Garden State. Although the full ramifications of the reforms have yet to be seen, the caps on deductions for mortgage interest and state and local taxes have made prospective buyers in the state with the highest property taxes think twice before signing on the dotted line, brokers say.
Costs for agents, too, are spiking as new technology has put pricey tools in the hands of savvy brokers wrestling for an edge. Vying for listings and sales now means ponying up for lead generation services such as Zillow’s Premier Agent, data teams and photographers for social accounts. See The Real Deal’s annual ranking of Northern New Jersey’s top brokerages on page here, and read more about the industry impact of the tax bill here.
While sales of homes up to $1 million are strong, the high-end is still struggling, and the lack of SALT deductions isn’t helping matters. Still, there were plenty of big deals done, mostly for new or renovated properties. Check out TRD’s ranking of priciest homes for more.
Meanwhile, the multifamily market saw a huge jump in permitted units over the past year, with projects popping up from Harrison to Weehawken. Read about Northern Jersey’s biggest residential developers here.
One major-league residential project in Jersey City is stalled, however, and developer Kushner Companies is claiming political bias as the reason. Click here for more, and be sure to read TRD’s exclusive interview with Charlie Kushner.
Speaking of politics, all industry eyes are on the new governor, Phil Murphy. Six months into his administration, Murphy has finally seen some progress on his agenda. His millionaire’s tax — now a multimillionaire’s tax — is on the books, and he seems to have found a partial solution to that pesky SALT problem.
Murphy also signed legalized sports-betting into law in May, and casinos and racetracks are up and running from Monmouth Park to the Meadowlands, with some unexpected companies getting into the game as well. No market is set to benefit more than Atlantic City’s hospitality industry — read more about that here.
Also on the commercial side is our look at the biggest office leases over the past year, which were … not so big.
Finally, a push to legalize recreational marijuana may get the green light, driving demand for farmland and industrial space. A by-the-numbers look at how that could stoke the market can be found here.
Enjoy the issue!