Downturn spikes housing vacancies

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In Morris County, Pequannock Township Manager David Holberg said a very large, newly built continuing-care retirement community largely accounts for a spike similar to that in Colts Neck — almost 355 percent.

“The community is known as Cedar Crest and it has almost 2,000 units, including 1,500 residential units,” Holberg said. “It’s extremely fluid. Vacancy rates would be higher there than at a single-family housing development.”

In other municipalities where the vacancy rate was markedly higher during the last decade, the new census figures were roundly questioned.

Lakewood, which according to the 2010 Census now is the most populous municipality in Ocean County, saw its housing vacancy rate jump almost 54 percent, from 1,338 vacant homes in 2000 to 2,054 in 2010.

Lakewood Manager Michael Muscillo can’t figure out where the vacant units are.

“I don’t see it here,” Muscillo said. “From what I gather, I don’t think there’s much of
a vacancy rate.”

Jack Waters, the regional vice president for Weichert who oversees Middlesex, Monmouth and Ocean counties, took stock of the census numbers and said, “Nowhere in my footprint can I see that vacancy rate. From my personal experience, there’s nowhere that there’s a glut of vacancies.”

Waters said he recently reviewed market data showing a rental vacancy rate “much higher than I expected” and speculated that factored into the 2010 Census figures.

“There’s a better housing affordability rate now, which might be driving a higher rental vacancy rate,” Waters said.

Lawrence Vecchio, broker-owner of the statewide Better Homes Realty, said New Jersey isn’t facing serious vacancy issues.

“My bet is those numbers would be related to multifamily (units),” Vecchio said. “I’d say garden apartment complexes, mostly. We have some foreclosures, people leaving their homes unsold, some unfinished developments, but that’s not a big percentage of the inventory.”

Ronnie Glomb, broker-manager at Better Homes’ offices in Morristown, said luxury apartments are going up right now in Morristown, where he says the rental market is “extremely busy. Landlords are getting wiser. Fairly priced rentals move quickly.”