New Jersey, like the rest of the country, has been hit hard by the economic downturn. According to Dr. James Hughes, Dean of the Edward J. Bloustein School of Planning and Public Policy, the state has lost more than 9,000 private sector jobs in the first five months of 2008. In addition, lenders across the country are tightening their purse strings, and Hughes said it's likely the country as a whole will continue to see recessionary or near recessionary conditions.

While this is bad news for consumers and borrows, it's good news for those who own multifamily rental properties. Hughes' research has found that home ownership in the state has dropped from its 2005 high of 70% to 68.3%, and he expects it to drop further to just under 65%.

Many people are joining the rental pool because New Jersey's high housing costs--housing in the state costs 52% more than the national average--and high property taxes combine to make renting an attractive prospect, especially in the current economic climate, in which homes are not appreciating in value as much as they used to. So says David Barry, president of Applied Development, who spoke in this session.