ELWOOD PARK, NJ-Mounting job losses continue to weaken demand for rental apartments in the Garden State, although the impact varies by region, finds a Q3 report from Marcus & Millichap Real Estate Investment Services.

The firm forecasts that 129,500 employees will lose their jobs this year, a 3.3% reduction in the state’s job base. In 2008, the state withstood 81,600 layoffs. The impact of those employment losses on the apartment market differs in each portion in the state. In the high-rent districts of Northern New Jersey, for instance, asking rental rates have dropped the quickest, but vacancy increased only 30 basis points in the second quarter. In the first half of ’09, the Northern New Jersey vacancy rate rose 130 basis points to 4.8%, while asking and effective rents slipped by 1.4% and 2.6% to $1,497 per month and $1,436 per month, respectively.

In Southern New Jersey, meanwhile, the vacancy rate has stabilized, while asking rents rose marginally due to the area’s affordability compared to Philadelphia and Central New Jersey. Over the past two quarters, apartment owners in Southern New Jersey have recorded a 50 basis point increase in vacancy to 7.2%. During the same period, asking rents have increased 0.1% to $940 per month and effective rents have inched up 0.4% to $887 per month.

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