Stringent mortgage requirements, high unemployment rates and low housing inventory are among the factors driving many would-be home buyers to the Garden State rental market. With more people choosing apartment communities as a flexible and affordable lifestyle option, vacancies nationwide have fallen to their lowest point in more than 10 years.

As one of New Jersey’s most active real estate development firms, Alfred Sanzari Enterprises of Hackensack, N.J., has seen vacancy rates decline throughout its residential portfolio over the last 12 months. The firm owns and manages approximately 538 luxury and garden-style units throughout Bergen County.

“Our vacancy levels fell to about 1.1 percent in May, down from almost 8 percent just one year ago, and consistently have been under 2 percent over the last year,” said Victoria Tinen, residential property manager. “This achievement is a group effort between our property and building managers, and leasing agents.”

A growing number of college graduates who do not have the funds or credit needed for a mortgage down payment, combined with an influx of corporate relocations from the nearby headquarters of Mercedes-Benz USA, IBM and A&P have fueled an increased demand for apartment living, said Tinen.

Optimizing Appeal

Renters want to live in a building where they know the owner is committed to making necessary improvements. For Alfred Sanzari Enterprises, it starts with creating a product that makes tenants want to stay even when their lease term expires. “We know people have options: either move to another apartment community or buy a home,” said Tinen. “We strive to create a maintenance-free atmosphere where people want to continue renting from us.”