New Jersey is building homes at its fastest pace in decades — a surge that is reshaping Central Jersey’s commuter rail towns, downtowns and redevelopment corridors, according to a new Rutgers University report that tracks long-term construction trends.
The state produced nearly 180,000 housing units between 2020 and 2024, marking its strongest five-year stretch since the 1980s. If current trends hold, New Jersey is on pace to add about 359,300 units during the 2020s, potentially making the decade the state’s most productive period for housing construction this century.
The findings are outlined in From Farmland to Suburban Front Yards to High Density Frontiers: Housing Production in the Garden State Since 1940, the 42nd installment of the Rutgers Regional Report. The study was authored by James W. Hughes, professor and dean emeritus at Rutgers’ Edward J. Bloustein School of Planning and Public Policy, and Connie Hughes, former chief of management and policy in the New Jersey Governor’s Office.
“New Jersey’s housing production roller coaster has been defined by long-term crests and falls since the 1940s,” James Hughes said. “The increase in construction during the 2020s so far suggests a potential turning point that adds important context to ongoing policy discussions about housing supply in New Jersey.”
Central Jersey growth concentrates near rail stations and downtowns
For Central Jersey — anchored by New Brunswick, Elizabeth, Perth Amboy, Somerville, Rahway and other rail-served communities — the rebound has largely taken the form of higher-density housing built near train stations, downtown cores and existing infrastructure.
The report documents a long-running shift away from mid‑20th‑century farmland‑to‑subdivision development. That transition is now most visible in mature suburban downtowns and commuter rail corridors, where redevelopment has increasingly replaced greenfield construction — a trend that has accelerated during the current decade.
Unlike previous eras dominated by traditional single‑family subdivisions, much of today’s growth centers on multifamily and mixed‑use projects in already built‑out areas, reflecting both limited land availability and strong housing demand tied to rail access.
County-by-county: growth strong, but uneven
In Somerset County, residential growth peaked in the 1980s, when 2,407 homes were built as farmland gave way to suburban subdivisions. Permit activity dropped steadily in subsequent decades, but the county has already recorded 1,067 permits in the first five years of the 2020s — nearly matching its total for the entire previous decade.
Even so, the pace has slowed more recently, declining from 1,913 permits in 2020 to 678 in 2024.
Middlesex County has shown even stronger growth. After issuing 2,147 permits between 2010 and 2019, the county has already logged 2,567 permits this decade, nearly 20% more than the prior 10‑year span. As in Somerset, however, permits have fallen from a peak in 2020.
In Union County, residential construction has surged this decade, with 2,543 permits issued, compared with 1,474 from 2010 to 2019, though year‑to‑year swings remain pronounced.
Hunterdon County has also seen an uptick, issuing 438 permits so far this decade, up from 366 in the previous one. While totals remain below historic peaks, permit activity has remained relatively steady since 2020.
Across New Jersey, the Central Jersey figures mirror the broader trend: 35,930 residential permits have been issued statewide this decade, compared with 24,707 from 2010 to 2019.
Housing surge collides with zoning, affordability pressure
The construction rebound is unfolding alongside intensifying zoning disputes and mounting affordable housing pressure across Central Jersey.
Under New Jersey’s long‑standing Mount Laurel doctrine, municipalities must provide a realistic opportunity for affordable housing. Developers have increasingly turned to builder’s remedy lawsuits in towns found out of compliance — court actions that can override local zoning to permit higher‑density residential projects with mandated affordable set‑asides.
That tension has played out across the region as local officials balance state housing obligations with infrastructure capacity, traffic concerns and neighborhood opposition.
Even with the recent surge, the report cautions that it remains unclear whether new construction will fully close long‑standing housing gaps — particularly for renters and lower‑income households in the region’s highest‑cost markets.
Still, the authors say early results suggest rail‑adjacent downtowns may be entering a new phase in how — and where — housing is built.
“A key question going forward is whether this production uptrend can be sustained or expanded, and whether it will be sufficient to meet growing housing demand in the state,” Connie Hughes said.
The report projects 359,000 residential building permits during the 2020s, including a sharp rise in multifamily development. Multifamily permits now account for more than 62% of permits this decade, a reversal from the 1990s and 2000s, when single‑family homes dominated.