The Jersey Shore, with its beautiful beaches and vibrant community, is a dream location for many workers. However, finding affordable housing in this area has become increasingly challenging. The rising prices of homes and apartments have created a situation where even middle-class workers are getting priced out of the market.
Richard Naughton, a chef from England, recently moved to New Jersey to work for renowned restaurateur David Burke. He was excited about the opportunity but soon realized that finding a suitable apartment that fit his budget was not easy. Naughton expressed his frustration, saying, "Everywhere, the housing prices are going up and up. For someone who is a first-time renter in the area, it's incredibly difficult to find somewhere, in my price range especially."
Richard Naughton has recently moved to the United States from England. He is working as a chef at The Goat, a restaurant owned by David Burke. Naughton is currently searching for housing in the area at an affordable price. Union Beach, NJ Thursday, January 11, 2024
This struggle to find middle-class housing is not unique to Naughton alone. Nurses, teachers, and chefs are just a few examples of professionals who are facing similar challenges. The scarcity of affordable housing not only affects the workers but also the employers who need to hire them.
Recognizing the severity of this issue, the Murphy administration in New Jersey has launched a $50 million program to provide subsidies to developers who agree to set aside apartment units for the middle class. This program aims to address the growing need for affordable housing and ensure that workers can live in the communities they serve.
"When people can't live in your community who serve your community (like) a teacher, they're not going to be as invested in your district," said Melanie Walter, executive director of the New Jersey Housing and Mortgage Finance Agency. "Their kids are going to school somewhere else. They're paying taxes somewhere else. So building out that kind of housing helps to keep the community vital and helps to keep people local."
Affordable housing has traditionally been associated with low-income workers. However, the concept has expanded, particularly since the COVID-19 pandemic. The surge of residents migrating from cities to suburbs caused an overwhelming demand for housing, leading to a significant increase in home prices and rents. The median price for a home sold in New Jersey jumped from $332,500 in January 2020 to $515,000 in less than four years. Rent prices have followed a similar upward trajectory, with Monmouth and Ocean County residents needing to earn at least $64,080 to afford a two-bedroom apartment with a median rent of $1,602.
Chef David Burke at Red Horse by David Burke in Rumson
While New Jersey boasts the highest median household income in the nation, more and more residents find themselves burdened by the high cost of housing. According to a recent report by Rutgers University's State Policy Lab, nearly a third of homeowners and half of renters in New Jersey spend at least 30% of their income on housing, classifying them as "cost burdened."
Shore-area employers welcome the population growth that comes with the influx of workers. However, they also witness their employees struggling to keep up with housing costs. David Burke, a renowned chef and restaurateur, shared his experience of new chefs having to live in his guest house or rent motel rooms until they find permanent housing. Affordable apartments near his restaurants are scarce, and transportation options are limited, often leaving Burke to cover their Uber rides home.
"It costs me more money because people can't live in towns that we have restaurants in," Burke explained. "I think there's a lot more restaurants opening in Monmouth and Ocean counties. It requires a lot more labor. Restaurants hire a lot of people. Some are part-time, some are full-time."
New Jersey's solution to this housing crisis involves a program designed to increase the supply of apartments for moderate-income workers. This $50 million program, managed by the New Jersey Housing and Mortgage Finance Agency, offers subsidies to developers who construct units for residents earning between 80% and 120% of the area's median income. These units will remain affordable for 45 years and will be strategically located near transit stations.
The income eligibility levels vary depending on the location and family size. In Monmouth and Ocean counties, for example, the income range would be between $72,830 and $109,245 for individuals and $104,043 to $156,064 for a family of four. This program aims to address the shortage of affordable housing and ensure that the middle class can find suitable homes within their means.
"We're always going to have more people than there's housing available, and that drives up market prices," explained Melanie Walter from the New Jersey Housing and Mortgage Finance Agency. "So it is a question of, can you build your way out? We're building 7,000 units a year. That's a great year for us, but that's not keeping up with demand. And so that's going to go to the high end of the market."
Richard Naughton has recently moved to the United States from England. He is working as a chef at The Goat, a restaurant owned by David Burke. Naughton is currently searching for housing in the area at an affordable price. Union Beach, NJ Thursday, January 11, 2024
Finding a solution to the middle-class housing crisis is crucial. Employers and policymakers recognize the importance of providing affordable housing options to retain skilled workers within their communities. However, the challenges lie in the scarcity of available land and the rising costs of construction.
Workers like Richard Naughton continue their search for affordable housing. Naughton, who now lives in Burke's guest house, faces the daily struggle of commuting without a car, relying on unreliable bus services. His wish for a suitable two-bedroom apartment that is either within walking distance to work or near public transportation, priced between $2,000 and $3,000 per month, remains a challenge. Saving enough money for the security deposit proves to be an additional hurdle.
The shortage of middle-class housing is a complex issue that requires collaborative efforts from various stakeholders. As the demand for housing in the Jersey Shore continues to soar, it is vital that affordable options are made available, allowing workers to live comfortably in the communities they serve.
Note: This article was written by Michael L. Diamond, a business reporter with over 20 years of experience covering the New Jersey economy and the healthcare industry. He can be reached at [email protected].
