The Road Ahead: Why Housing Trends Will Shape New Jersey’s Future

June 26th, 2025 by Valerie Merritt

On Day 1 of the New Jersey Planning and Redevelopment Conference hosted by New Jersey Future and APA New Jersey, the keynote session “The Road Ahead: Economic, Housing, and Real Estate Trends” painted a clear picture of the challenges and opportunities shaping New Jersey’s housing future—and why the stakes are higher than ever.

One takeaway rang especially loud: we are simply not building enough housing. The shortage is pushing prices higher, and the consequences are real. Critical to New Jersey’s workforce and long-term economic vitality, young adults are increasingly being priced out and leaving the state, searching for more affordable housing. This trend threatens our state’s talent pipeline and could undermine businesses’ ability to attract and retain young workers.

Jeffrey Otteau, chief economist, Otteau Group, speaking at the 2025 NJ Planning & Redevelopment Conference during the keynote session “The Road Ahead: Economic, Housing, and Real Estate Trends in the Garden State,” before being joined by response panelists Melanie Walter, executive director, New Jersey Housing and Mortgage Finance Agency, and Emma Corrado, chief of staff, New Jersey Economic Development Authority

At the same time, immigrants continue to be a driving force behind New Jersey’s population growth. Not only are they sustaining our communities, but data shows that immigrants to New Jersey tend to have higher-than-average incomes, making them a critical part of our economic engine. Planning for a future that supports and welcomes this population is not just socially wise—it’s economically essential.

A third insight discussed in the session was how we’re meeting affordable housing requirements. While New Jersey is working to comply with the Mount Laurel doctrine, it over relies on large apartment buildings. This approach neglects the full spectrum of housing types—such as duplexes, triplexes, townhomes, and accessory dwelling units—that are just as important in creating inclusive, diverse communities.

These issues aren’t new, but they are urgent. If New Jersey is to remain a place where people of all ages and backgrounds can live and thrive, we must prioritize housing choice, affordability, and thoughtful land use planning.

For deeper context on these issues, check out these features written by Tim Evans, Research & Policy Director at New Jersey Future:

The road ahead will require bold planning, inclusive policy, and a shared commitment to making New Jersey a place that works for everyone.