■ Real Estate
■ Real Estate
“ Old dilapidated real estate in secondary locations , there ’ s not a taker for those properties as retail space . There ’ s not enough demand to fund expensive redevelopment . E-commerce has changed a lot of shopping habits .”
What retail space is successful right now ? Entertainment-related projects , according to Hanson . “ Social real estate , where people go to find restaurants , shopping , and the movies . These properties feed into a lifestyle ,” he says .
Other promising commercial projects anticipated for 2025 include manufacturing and multi-unit housing .
“ I think as companies grow , it is a great opportunity right now to invest in themselves ,” notes Columbia ’ s Lewis . “ Whether it ’ s office or warehouse space or a factory expansion , we are seeing some activity within manufacturing .”
At the same time , Lewis says housing inventory remains in short supply . “ There ’ s just not enough housing in New Jersey . Young couples are looking for apartments because buying a home is not a viable option right now . It ’ s extremely expensive to buy a single-family home , so multifamily housing continues to be an extremely healthy market ,” he says .
According to the National Association of Realtors , the average age of a first-time buyer is now 38 years old – the oldest ever .
“ There remains a critical shortage of single-family inventory ,” adds Terrie O ’ Connor .
“ This is challenging affordability while keeping prices rising higher .” According to Bankrate , the median price of a single-family home in the Garden State as of June 2024 was $ 550,400 .
O ’ Connor says that the lack of inventory is based on a few important factors . First , pricing premiums and higher interest rates force many entry-level buyers out of the market . There is also a shortage of new construction . “ With land
“ There remains a critical shortage of single-family inventory ,” adds Terrie O ’ Connor . “ This is challenging affordability while keeping prices rising higher .”
inventory in short supply in Northern New Jersey , residential developers are more likely to build townhomes or multi-unit rental projects ,” she explains .
“ There will continue to be a tremendous increase in new multi-unit rental projects , as young buyers seek an alternative to ownership ,” she notes , adding that the lifestyle needs
of young renters demand amenities and convenience . “ We are seeing more new mixed-use rental projects with retail on the bottom floor and residential above .”
While O ’ Connor is confident that 2025 will bring some relief regarding interest rates , she sees confidence building as a result of the national election cycle coming to a close . “ Elections create uncertainty , and that erodes confidence .”
The National Association of Realtors offers optimism for 2025 sales projections , predicting existing home sales will rise 9 % year-over-year and new home sales will jump by 11 %.
The limited inventory of single-family housing is also the result of a shift in lifestyle . Not just from remote workers , but also seniors . What was expected to be the “ great migration ” of baby boomers leaving their homes for warmer retirement regions has not materialized . “ Seniors are aging in place ,” O ’ Connor explains .
Regardless of the kind of real estate transaction , attorney David Polazzi stresses the importance of hiring the right professionals to assist with your transaction . “ It is important for buyers and sellers to seek out an attorney with actual experience with real estate transactions to ensure that pitfalls are avoided ,” he notes .
Editor ’ s Note : Learn more at The Commerce and Industry Association of NJ ’ s ( CIANJ ) event “ Real Estate 2025 Forecast and Legislative Update ” on January 31st .
“ I am positive about the new year ,” says Terrie O ’ Connor , President of Terrie O ’ Connor Realtors . “ I think there will be more transactions and a little more improvement all-around .” Shown here : 2 Alford Dr , Saddle River , NJ , priced at $ 5,500,000 , according to Zillow .
Photo : Terrie O ’ Connor Realtors
Photo : Terrie O ’ Connor Realtors