The price of rent is something that comes up a lot in politics and economics. The simple reality is that it is one of the most direct measures of how well the system is doing. When rent is both affordable to renters and lucrative to landlords, Ridgewood is doing well. When rent is too high or too low, we are met with potential issues.
The reason for this is that the property market, and rent in particular, works in the simplest terms. The price of rent is a marker of the balance between supply and demand. In terms of housing, supply and demand correlate to a large array of socioeconomic and political factors.
Over the past few months, rental prices have plummeted in Ridgewood. This is indicative of an increased supply and decreased demand. But why is this the case? Let’s take a look at what is going on in the Ridgewood rental market.
Rental supply in Ridgewood, NJ
There is increased supply of homes for rent in Ridgewood and this has to do with a number of factors. The impact of COVID-19 on human life and livelihood is crucial here. While the number of deaths in Ridgewood due to COVID-19 has not been as high as some other parts of New Jersey, a significant number of renters have died or become unable to live independently.
Furthermore, with the huge job loss numbers, many people could no longer afford rent in Ridgewood. Rent in Ridgewood is significantly higher than the national average. Rather than relying on government funds or a moratorium on evictions, some Ridgewood residents chose to leave instead. All of this increased the supply of rental units standing unoccupied. But it’s not just the loss of residents that has led to increased supply.
Before the pandemic started, as at any time, there were property owners and investors preparing to start renting out high end properties. The pandemic made these owners and investors put their plans on hold, as people stopped moving and those who did move required cheaper housing.
Now that the pandemic is ending, these property owners are trying to make up for lost time. Their properties are on the market to rent, adding to supply in an already undersaturated market. This too has led to the decrease in the price of rent in Ridgewood, NJ.
Rental demand in Ridgewood, NJ
At the same time, although the pandemic is no longer preventing people from renting new places, demand for rental units has gone down in Ridgewood, NJ. Many people are still recovering financially from the pandemic and are choosing to stay in shared homes or living with family. People living in cheaper areas are less likely to move into Ridgewood.
We are also still in a time of uncertainty. Those people who want to move into a new rental property are putting off their decisions until they have more clarity about home, social, and financial matters. Until the country has completely reopened and unemployment is as low as it once was, we can expect a level of uncertainty to remain.
New Jersey Renters Insurance
The good news for renters in Ridgewood and New Jersey as a whole is that it is possible to get some peace of mind from renters insurance. Renters insurance covers your possessions when you are a tenant. It can also cover personal liability, so that any damage you do to your landlord’s property or person can be claimed.
Take a look at the Lemonade NJ renters insurance page for more information. It is important for potential renters to understand the benefits of renting, so that demand for rental properties increases and units do not have to continue standing empty. Renters are also rightfully demanding more security in their residence, and requiring renters insurance can alleviate some of their concerns.
The pandemic caused havoc in the world, and that has been reflected in Ridgewood’s rental prices. With an increased supply due to COVID-19-related issues, and decreased demand in a recovering economy, the prices have plummeted. However, over the next few months we can expect to see the balance returning, as we gain increased certainty over what the future holds.
