Explore New Jersey

New Jersey’s construction industry is heading into one of its busiest periods in recent memory, with billions of dollars in projects scheduled over the next two years. At the same time, contractors and developers are facing mounting challenges that could slow progress, particularly when it comes to labor shortages and rising costs.

One of the brightest spots for the sector is the recognition of ZD Stucco Repair, which was recently ranked the number one stucco contractor in the state. Outperforming more than 50 other providers, the company’s ranking reflects the growing demand for quality exterior work across residential, commercial, and large-scale development projects.

But that’s just one piece of a much bigger picture. According to industry forecasts, New Jersey is on track for record-breaking construction spending in 2025 and 2026, totaling nearly $57.6 billion. Roughly $29.7 billion is projected for 2025, followed by another $28 billion in 2026. This marks a 5.17% increase compared to previous estimates, and much of this growth is tied to infrastructure funding through the federal Infrastructure Investment and Jobs Act.

In the first quarter of 2025 alone, civil projects accounted for nearly $1 billion in new construction starts. Utilities are expected to see more than $15 billion in investment, while hospitals and healthcare facilities are forecasted for $4.4 billion in upgrades and expansions. The Port Authority of New York and New Jersey is committing more than $4.2 billion to regional projects, and the New Jersey Economic Development Authority has more than $5.6 billion earmarked for statewide development.

Large-scale projects are already transforming the landscape. The Portal North Bridge replacement, the Netflix production hub at Fort Monmouth, and the Helix Innovation Campus in New Brunswick are among the high-profile ventures underway. Jersey City’s skyline is also changing with One Journal Square rising as a major mixed-use development. Meanwhile, Camden County has announced a $161 million infrastructure program to fund road and safety improvements through 2026.

Despite the optimism, labor shortages remain one of the industry’s most pressing issues. New Jersey had the second-highest construction unemployment rate in the country this past June at 8.5%. Preliminary data suggests the state lost nearly 900 construction jobs in June alone, and more than 8,000 positions over the past year. Nationwide, the Associated Builders and Contractors project a need for 439,000 new workers in 2025 to meet demand. Contractors in New Jersey face the dual challenge of an aging workforce and a shortage of younger workers entering the trade.

Adding to the pressure are rising costs and regulatory changes. Construction costs in North Jersey have jumped 34% since the pandemic, while South Jersey has seen increases of about 32%. New rules also aim to reshape how developers approach projects. The Department of Environmental Protection has introduced stricter building requirements in flood-prone areas, including elevating new structures to address sea-level rise. The “Zero Energy Construction Act,” effective January 1, 2025, requires all new commercial and residential buildings to be zero energy ready in order to receive permits. And as of February, sprinkler systems are mandatory in newly built townhomes unless applications were filed before mid-2024.

Commercial real estate trends are also influencing the construction outlook. After years of sluggish growth, transaction volume is beginning to rebound as interest rates stabilize. Sales volume for office, retail, and mixed-use properties fell sharply between 2022 and 2024, dropping from $13 billion to around $6 billion. However, projections indicate that number could rise again this year to $7.5 billion. With more sales expected, experts believe new waves of renovations, recapitalizations, and property improvement plans will follow.

Overall, construction spending in New Jersey is expected to rise 17% above 2024 levels, even as national figures show a 3% decline. The Garden State remains a leader in development and investment, but concerns about workforce supply, wages, and regulatory compliance continue to loom large.

For contractors, developers, and business leaders, the opportunities are immense, but the challenges ahead require innovation, adaptation, and continued focus on workforce development. The combination of record investment, new regulations, and evolving economic conditions make New Jersey’s construction industry one of the most dynamic sectors in the state today. For businesses seeking insights on growth, regulations, and economic impact across industries, Explore New Jersey’s business section offers a closer look at the developments shaping our future.

The cost of housing continues to rise nationwide, but the affordability crisis has become particularly severe in New Jersey. For many residents, the dream of owning a home—or even finding a reasonably priced rental—has slipped further out of reach as prices climb faster than incomes.

Recent analyses reveal that New Jersey is struggling more than most states when it comes to balancing household income against the cost of a mortgage or rent. Nearly one in three homeowners with a mortgage are now considered “cost-burdened,” meaning they spend more than 30 percent of their monthly income on housing. Renters face an even harsher reality, with more than half falling into that category.

This growing affordability gap highlights a structural problem that goes beyond temporary economic pressures. By 2030, New Jersey is projected to rank among the most expensive states in the nation for housing, with the ninth-highest median home price and the second-highest household income requirement to comfortably afford one. Even though the state boasts one of the strongest median incomes in the country, the math no longer works for a large share of families and individuals trying to secure housing.

One of the primary drivers of these challenges is limited housing supply. Suburban areas of New Jersey, long resistant to development, face some of the tightest inventory shortages. Demand remains strong, but the lack of available homes for sale continues to push prices upward. This problem is amplified by inflation and high interest rates, which have made mortgages significantly more expensive, leaving buyers squeezed from multiple angles.

Another factor complicating the situation is the pace of income growth compared with housing costs. From 2020 to 2025, the income needed to purchase a typical New Jersey home surged by more than 50 percent. Wages have not kept up, and the gap is leaving many unable to enter the housing market, even with stable jobs and above-average salaries.

Nationally, the median home price reached $375,000 in the third quarter of 2025—a record high and nearly five percent higher than last year. For perspective, 99 percent of counties across the United States are now considered less affordable than historic averages. In about a third of these counties, owning a median-priced home would consume more than 43 percent of a typical household’s wages, a threshold experts define as “seriously unaffordable.” New Jersey counties are well represented in these statistics, reinforcing the state’s position as one of the most difficult markets in the country.

The typical American homeowner now spends around $2,123 per month on housing expenses, which equates to more than a third of their income. In New Jersey, that number can run considerably higher, particularly in metropolitan areas close to New York City and Philadelphia where demand remains strong and competition is fierce.

While many families are feeling the crunch, some segments of the market continue to showcase luxury and exclusivity. Properties like the penthouse at Jersey City’s 77 Hudson highlight the dual nature of New Jersey real estate. The nearly 1,800-square-foot residence offers panoramic views of Manhattan, resort-style amenities, and a $2.59 million price tag—features that stand in stark contrast to the affordability challenges facing average buyers.

As the affordability crisis deepens, New Jersey finds itself at a crossroads. Without significant efforts to expand housing supply and address the growing gap between wages and home prices, the state risks pricing out a substantial portion of its residents. For many households, renting has become the only option, but even rental costs continue to rise at unsustainable rates.

New Jersey remains one of the most desirable places to live in the country thanks to its proximity to major cities, vibrant communities, and high quality of life. Yet these very strengths are contributing to a housing market that is becoming increasingly out of reach. For those looking to understand the trends shaping the future of housing in the Garden State—and to explore the latest market updates, property listings, and real estate opportunities—resources like Explore New Jersey Real Estate provide valuable insights.

Whether you are a prospective buyer, renter, or investor, keeping an eye on these shifts will be essential. The challenges are real, but so too are the opportunities for those prepared to navigate New Jersey’s complex and evolving housing landscape.