New Report: NJ Is the Fifth Most Expensive Place to Rent in the Nation
2026 Out of Reach data shows NJ’s housing affordability is slipping; Housing advocates renew calls for permanent Affordable Housing Trust Fund investment

7/23/2026

Full-time workers need to earn $43.89 per hour to afford a modest, two-bedroom home at Fair Market Rent in New Jersey. This is the state’s “2026 Housing Wage” according to Out of Reach, a report published jointly today by the National Low Income Housing Coalition (NLIHC) and the Housing and Community Development Network of New Jersey (the Network). The average renter in the Garden State earns $24.92 per hour, making NJ the fifth most expensive place for renters in the nation.

Out of Reach, released annually, documents the gulf between wages and what people need to earn to afford their rents. The report’s Housing Wage is an estimate of the hourly wage full-time workers must earn to afford a rental home at HUD’s Fair Market Rent without spending more than 30 percent of their incomes. According to this year’s report, the national 2026 Housing Wage is $34.73 per hour for a modest two-bedroom rental home.

“Housing is a basic necessity for everyone. It is a human right that is threatened by rising costs and one that is growing further out of reach for households, especially low-income families,” said Staci Berger, president and chief executive officer of the Network. “It is extremely alarming that NJ is now the 5th least affordable state in the country to rent an apartment. For the last few years, we have ranked 7th in this report, but this new data shows we are moving in the wrong direction.”

Housing advocates celebrated the adoption of the Forbidding Algorithmic Inflation of Rent (FAIR) Act earlier this week, a top policy priority that the Network and its member organizations have worked to enact for more than three years. The new law prohibits the use of algorithmic rent-setting practices that coordinate prices across competing landlords, helping to curb a practice that has contributed to rising housing costs. The FAIR Act will help in the short term, Berger said, and the state and federal governments must provide resources to create more rental homes and home ownership opportunities in the long run.

Last year, then-Governor Murphy zeroed out all funding for the Affordable Housing Trust Fund (AHTF), the main state program that supports the production of affordable homes, leaving communities and nonprofit developers working with them scrambling. This year, the state budget included $36 million in the AHTF, which advocates note is a quarter of what the Fund is due to collect.

“We cannot build more homes and solve the housing supply problem unless elected officials at every level of government invest seriously in our housing market. The Garden State is less affordable for renters because nonprofits do not have predictable funding, despite legal requirements that the AHTF receive dedicated revenue. State leaders from both parties have raided this fund repeatedly through the budget process, making it even more challenging to build in this economy. NJ needs predictable development funding and mechanisms to keep rent affordable,” said Berger.

To boost affordable home opportunities in NJ, housing advocates are urging Governor Sherrill and legislative leaders to:

• Increase and Protect Investment in the Affordable Housing Trust Fund: The AHTF is increasingly being used to support a range of critical housing programs, including rental assistance. While these investments are essential, relying on the Fund to serve multiple purposes leaves fewer resources available to build and preserve the affordable homes New Jersey residents urgently need. The Network is calling for the passage of legislation (A1737/S3103) that would dedicate half of the revenue generated by the mansion tax to strengthen the AHTF and expand resources for affordable housing production.

• Grow the Neighborhood Revitalization Tax Credit (NRTC): Since its inception in 2002, the NRTC has become one of the most successful public/private programs furthering community development and neighborhood change in New Jersey, leveraging $5-$7 for every dollar invested. Despite the program’s success, it continues to be level funded at $15 million. Advocates are urging state leaders to raise the NRTC cap to $65 million.

“As federal funding declines and the Trump Administration targets our most vulnerable neighbors, we must keep momentum going with sustained, long-term state investments. That’s the only way to ensure every resident can thrive, regardless of changing priorities in Washington,” Berger said. “Community developers know what works here, we have decades of experience that can build the homes our residents need through programs like the AHTF and NRTC.”

“To meaningfully address the affordable housing crisis, the federal government must adequately fund housing programs in a way that would expand rental assistance and both preserve and increase the supply of deeply affordable homes for those with the lowest incomes,” said NLIHC President and CEO Renee M. Willis. “Out of Reach 2026 shows why millions of low-income renters are struggling to afford their homes. The president’s recent FY27 budget request would drastically underfund HUD programs, worsening the affordable housing crisis and threatening the housing stability of families struggling to keep roofs over their heads. We have the resources to invest in expanding housing solutions that provide stable homes for the lowest-income people in our country. We just need the political will to do so.”

For additional information, and to download the report, visit nlihc.org/oor.  For NJ specific Out of Reach data, visitwww.hcdnnj.org/oor.

About the Housing and Community Development Network of NJ
The Housing and Community Development Network of New Jersey is the statewide association of more than 270 community development corporations, individuals and other organizations that support the creation of affordable homes, economic opportunities, and strong communities. For more information on the Network, visit www.hcdnnj.org.