From the Record/Herald, by Prashant Gopal:
It’s a time of transition for New Jersey home builders.
The real estate market appears to be cooling from the peak levels of 2004 and 2005, as cautious buyers are less willing to bid up prices. Vacant land is disappearing. And New Jersey’s environmental regulations make it difficult to build on what land is available.
Builders are responding by finding ways to boost both new home supplies and demand. Some developers are focusing on housing for senior citizens, many of whom might otherwise retire outside the state. And builders are redeveloping former industrial zones in urban areas.
Still, developers should prepare for the possibility of a market pullback, said Patrick O’Keefe, CEO for the New Jersey Builders Association
“Builders are advised … to manage their levels of activity with an eye toward the future, rather than assume the trends of the past,” O’Keefe said.