# New Jersey

### Summary

New Jersey state is facing an acute affordable housing crisis. For every 100 low-income renter households, there are 44 units available that are affordable to them. The median rent in the state has risen by 37% since 2010, while median household incomes have grown by 33%. Currently, the state is short over 185,037 low-income housing units, meaning rental units that are affordable to households earning ≤60% of AMI.

- **36.2%** share of renter households
- **41.3%** share of low-income households
- **48.1%** share of rent-burdened households

### Renter population data

#### Renters vs homeowners
| Household Type          | Households | % Share |
|-------------------------|------------|---------|
| Renter households       | 1,229,008  | 36.2%   |
| Homeowner households    | 2,168,148  | 63.8%   |
| **Total households**    | **3,397,156** | **100.0%** |

#### Low-income renter households
| Income Group            | Households | % Share |
|-------------------------|------------|---------|
| Extremely low-income    | 194,839    | 15.9%   |
| Very low-income         | 135,778    | 11.0%   |
| Low-income              | 176,474    | 14.4%   |
| **All low-income households** | **507,091** | **41.3%** |

#### Rent-burdened households
| Burden Level            | Households | % Share |
|-------------------------|------------|---------|
| Moderately rent-burdened| 283,275    | 23.0%   |
| 30.0–34.9%             | 103,831    | 8.4%    |
| 35.0–39.9%             | 75,100     | 6.1%    |
| 40.0-49.9%             | 104,344    | 8.5%    |
| Severely rent-burdened  | 307,865    | 25.0%   |
| **All rent-burdened households** | **591,140** | **48.1%** |

### Affordable housing shortage

#### Rent vs median household income
| Year                     | Median Household Income | Median Rent | Increase (%) |
|--------------------------|------------------------|-------------|--------------|
| 2010                     | $40,045                | $947        | -            |
| 2021                     | $53,306                | $1,297      | 33.1% / 37.0%|

#### Affordable housing stock
| Supply vs Demand         | Units      |
|--------------------------|-------------|
| Supply (current stock)   | 145,580     |
| Demand (total units needed)| 330,617   |
| **Shortage**            | **185,037** |
| **Supply/Demand Ratio** | **44.0%**   |

### Finance institutions

#### New Jersey Housing and Mortgage Finance Agency

**Address**: 637 S Clinton Avenue, Trenton, NJ 08611-1811

##### LIST OF loan programs 
- [Affordable Housing Gap Subsidy (AHGS) Program](https://nj.gov/dca/hmfa/developers/docs/multifamily/mf_Affordable_Housing_Gap_Subsidy_Guidelines.pdf)  
- [9% TaxCredit Project Rate Lock Program](https://nj.gov/dca/hmfa/developers/docs/multifamily/MF9_TaxCredit%20_RateLockProgramGuidelines.pdf)  
- [Permanent Take-Out Financing](https://nj.gov/dca/hmfa/developers/docs/multifamily/mf_perm_only_checklist.pdf)  
- [Construction Only Financing and Construction and Permanent Financing](https://nj.gov/dca/hmfa/developers/docs/multifamily/mf_constr_and_constr_and_perm_checklist.pdf)  
- [Multifamily Rental Financing Program](https://nj.gov/dca/hmfa/developers/docs/multifamily/mf_rental_financing_underwriting_guidelines.pdf)

### QAP document (Qualified Allocation Plan)

The QAP is a document that states, and a few local agencies, must develop in order to distribute federal Low Income Housing Tax Credits (LIHTCs), which can be awarded only to a building that fits the QAP’s priorities and criteria.

### Housing news

#### [How Fed Rate Cuts Impact the Housing Market](https://www.fastcompany.com/91193735/housing-market-what-fed-rate-cuts-will-actually-do?utm_campaign=News%20digests%202024&utm_source=hs_email&utm_medium=email&_hsenc=p2ANqtz-_nm9nCdKkRNvu6uHb-Oj_MHevbBny0zyg3GmWdJmo6ZfcNZjLMGPZGhD7XXrm6HHPhg_i4)
**Summary**: The Federal Reserve’s recent rate cuts will influence the housing market, but the effects won't be immediate. Lower rates make borrowing more affordable, but ongoing housing shortages remain significant obstacles.

#### [Housing market won’t come ‘unstuck’ until 2026, economists predict](https://nypost.com/2024/06/26/business/housing-market-wont-bounce-back-until-2026-economists-predict-heres-why/?utm_campaign=News%20digests%202024&utm_source=hs_email&utm_medium=email&_hsenc=p2ANqtz-98J9VclPF2voPBvWkazFLY09dd5s4nbERm2DCK2xfTjq2DhcVtm3TG0A3DQb32A6LG3unn)
Economists predict that home affordability will improve only with a recession, as several factors contribute to the protracted downturn.

#### [States With the Largest Homeless Populations](https://www.usnews.com/news/best-states/articles/states-with-the-most-homeless-people?utm_campaign=News%20digests%202024&utm_source=hs_email&utm_medium=email&_hsenc=p2ANqtz--a4rsRpLbdj0rgcr1WOgq3zfiv--chzD5guiVN2jN7pkx10UAbVZN1gfTFkSbNNrEGVtMu)
In 2023, the number of homeless individuals in the U.S. reached approximately 653,000, primarily due to a lack of affordable housing.

#### [The homebuying affordability gap is widening](https://www.nbcnews.com/data-graphics/housing-affordability-worst-and-costs-highest-rcna155285?utm_campaign=News%20digests%202024&utm_source=hs_email&utm_medium=email&_hsenc=p2ANqtz-98J9VclPF2voPBvWkazFLY09dd5s4nbERm2DCK2xfTjq2DhcVtm3TG0A3DQb32A6LG3unn)
The national affordability gap is nearing a 10-year high, with only 63% of counties being affordable for median-income households.

#### [Homelessness worsening among workers](https://www.washingtonpost.com/business/2024/07/28/homeless-lack-of-affordable-housing-economy/?utm_campaign=News%20digests%202024&utm_source=hs_email&utm_medium=email&_hsenc=p2ANqtz-9JiYMxP47t5wqM-8ciCUfuaPzeMB0KK-AZoUwExxwBUGgkJ0U0t5ZTkDXpGDesWDkACHvx)
Increasing numbers of employed Americans are facing homelessness due to rising rents and lack of affordable housing options.