Luxury vs. Reality: The Shocking Truth Behind New Jersey’s Apartment Boom
the staff of the Ridgewood blog
Montvale NJ, In a recent deep-dive analysis of New Jersey’s real estate landscape, Montvale Mayor Mike Ghassali raised a question that has every resident from Bergen County to Cape May talking: Who is Trenton really building for?
Data from 2020 to 2024 reveals a staggering disparity between the national housing trend and what is actually happening on the ground in the Garden State. While the rest of the country is finding ways to balance growth, New Jersey seems to be stuck in a “Luxury-Only” loop.
The Numbers Don’t Lie: NJ vs. The Nation
Between 2020 and 2024, New Jersey added 60,161 new apartments. On the surface, this looks like a win for a state facing a housing shortage. However, once you pull back the curtain on the “affordability” of these units, the picture turns bleak:
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Total New Units: 60,161
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Luxury/Market-Rate Units: 56,260
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Affordable Units: Only 3,901 (6.5%)
Compare this to the national average, where 12.6% of new construction is designated as affordable. New Jersey—the only state with this specific, controversial affordable housing mandate—is producing affordable units at half the national rate.
The Montvale Standoff: Efficiency vs. Density
Mayor Ghassali, a lead voice in the Local Leaders for Responsible Planning (LLRP) coalition, recently pointed to a frustrating irony in the state’s current system.
When Montvale presented a plan for 100% affordable housing units to meet its state-mandated obligations, the plan was declined by Fair Share Housing advocates and state-appointed adjudicators. Instead, the current system often pushes for “inclusionary” zoning—high-density projects where only 15–20% of units are affordable, forcing towns to accept hundreds of luxury units just to get a handful of affordable ones.
“Who exactly are Fair Share Housing and the Trenton legislators fighting for?” Ghassali asks. “They insist we ‘need more affordable housing,’ yet they decline plans that would deliver exactly that without the strain of massive high-density luxury development.”
What This Means for New Jersey Residents
This “Luxury-First” approach creates several ripple effects:
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Increased Infrastructure Strain: To get 50 affordable apartments, a town might be forced to allow 250 luxury units, putting sudden pressure on local schools, sewers, and police.
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Out-of-Reach Pricing: With the vast majority of new builds being “Luxury,” the median rent in North Jersey continues to climb, often exceeding $2,700–$4,000 for new one-bedroom units.
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The Suburb Identity Crisis: Many local leaders argue that the state’s push for high-density development is erasing the very character of New Jersey’s suburban communities.
The Road to 2035
As New Jersey enters the Fourth Round of affordable housing mandates, the debate is heating up. Mayor Ghassali and over 20 other municipalities are taking their fight for “Responsible Planning” to the courts, arguing that the current system enriches developers while failing the low-to-moderate-income families it claims to protect.
The Question Remains: Is it time to overhaul the formula? If the current policy results in 93% luxury housing, is it really an “affordable housing” policy at all?
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Why on earth would you build units for poor people when you can’t evict them for non-payment of rent?
Economics 101
That’s right – instead of rent build condos where you have to pay mortgages, have some equity.
NO
To answer the question — No, it does not make any sense at all. Adding to the fact that medical facilities now count as affordable housing when it is an assisted living building. 10% of the units will count, but the drain on the town resources will be much worse than from a traditional residential apartment building. Example- an 100 unit facility– cleaning staff, dining hall, residents home all day- toilets/showers are being used much more than a family would use an apartment. How is this sustainable???
Your blog has become an indispensable resource for me. I’m always excited to see what new insights you have to offer. Thank you for consistently delivering top-notch content!
It’s working VERY WELL!
For builders, politicians, grifters and other scoundrels.
The social experiment known as the Mt Laurel mandate has now been in place for over 40 years. In terms of its stated purpose of creating educational opportunities for under-privileged students in more affluent school districts, it has utterly failed. IN terms of generating political contributions from large developers, its a huge success.