TRENTON, N.J. – The Sherrill-Caldwell Administration released a comprehensive housing strategy aimed at lowering costs, expanding homeownership, and addressing New Jersey’s shortage of more than 200,000 homes early on in the transition process, but where are we today?
Housing prices are on the rise, inventory is low, and property taxes are skyrocketing statewide from school budget woes in many communities.
The report outlines dozens of recommendations ranging from streamlining state permitting to increasing financial assistance for homebuyers and redeveloping vacant commercial properties.
“Housing affordability is one of the most pressing concerns for residents across New Jersey,” the report states. “The state faces a severe housing shortage—more than 200,000 units—and this gap not only affects low- and moderate-income households, but increasingly affects middle-class families who are also struggling to rent or buy a home.”
The administration said more than one-third of New Jersey households spend over 30 percent of their income on housing, while years of constrained construction, rising development costs, labor shortages, and regulatory hurdles have driven prices beyond the reach of many residents. The report concludes that the state “must take swift action to improve all parts of the housing ecosystem so it can work for New Jersey residents.”
Housing czar, faster approvals among top priorities
The report’s lead recommendation calls for establishing a Director of Housing Supply and Affordability—commonly described as a housing czar—within the Governor’s Office to coordinate policy among state agencies and accelerate housing production. The position would oversee a cross-agency permitting team and develop statewide housing production and preservation goals.
Officials also recommend directing NJ Transit and other state agencies to identify vacant and underutilized public properties suitable for transit-oriented housing development. The report also urges redevelopment of vacant shopping malls, office parks, and other commercial properties to create both affordable and market-rate housing while shortening lengthy permitting timelines that often delay projects for years.
“Meeting this need will call for a collaborative, all-hands-on-deck effort involving every level of government and the many state agencies engaged in housing development,” the report states.
Expanding homeownership opportunities
The administration’s recommendations also focus heavily on increasing homeownership through expanded down payment assistance, preservation of existing affordable housing, and construction of “missing middle” housing such as duplexes, triplexes, accessory dwelling units, and starter homes. The report recommends enhancing financing tools while modernizing regulations that currently slow construction.
Among its recommendations are expanding the state’s Down Payment Assistance and First-Generation Homebuyer Program, creating a statewide inventory of subsidized housing to preserve existing affordable units, supporting municipal land banks, and strengthening enforcement against housing discrimination and predatory lending. The report also proposes increasing investment in nonprofit and faith-based housing developers and expanding access to Community Development Financial Institutions that finance affordable housing projects.
Federal housing cuts raise additional concerns
The report warns that potential reductions in federal housing funding could worsen affordability and homelessness across New Jersey. It recommends strengthening the state’s homelessness response system, coordinating with New Jersey’s congressional delegation to protect federal funding, and pursuing legal challenges when appropriate if federal housing resources are reduced.
“The Sherrill-Caldwell Administration must take swift action to improve all parts of the housing ecosystem so it can work for New Jersey residents,” the report states, adding that lowering housing costs will require preserving existing homes, building new housing, modernizing financing, and improving coordination across state and local government.
