Camden, New Jersey
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COMPREHENSIVE HOUSING MARKET ANALYSIS Camden, New Jersey U.S. Department of Housing and Urban Development Office of Policy Development and Research As of May 1, 2017 Summary Economy homes that may reenter the market likely will satisfy part of the forecast Housing Market Area Although payrolls are still below demand. their 2006 peak, job growth in the Camden HMA since 2015 has been Rental Market strong. During the 12 months ending Pennsylvania Bucks Mercer The overall rental housing market in Monmouth April 2017, nonfarm payrolls in the Montgomery HMA increased by 12,900 jobs, or the HMA is slightly soft, with an Chester New Jersey Philadelphia Ocean estimated vacancy rate of 7.3 percent, Delaware Burlington 2.5 percent. State-based incentives down from 8.6 percent in April 2010. Delaware Camden established in 2013 engendered strong Gloucester job growth in the manufacturing and Despite relatively high levels of apart- Salem ment construction activity since 2013, Atlantic the transportation and utilities sectors New Castle Cumberland and significant commercial construc- the apartment market is balanced, with Delaware Bay Atlantic Ocean tion activity in the city of Camden. a vacancy rate of 4.7 percent as of the The Camden Housing Market Area Job gains are expected to continue first quarter of 2017 (Axiometrics, Inc.). (HMA) is coterminous with the Camden, during the 3-year forecast period, During the forecast period, demand is NJ Metropolitan Division in South albeit at a more modest pace of 7,900 expected for 2,725 new market-rate New Jersey and comprises Burlington, jobs, or 1.5 percent, annually. rental units (Table 1). The 770 apart- Camden, and Gloucester Counties. The ments under construction will satisfy HMA is a largely suburban community Sales Market some of the forecast demand. and is a regional hub for healthcare services and higher education in South The sales housing market in the HMA Table 1. Housing Demand in the New Jersey. The city of Camden is the is slightly soft, with an estimated Camden HMA During the most populous of the 101 townships, vacancy rate of 1.3 percent. Existing Forecast Period boroughs, and cities in the HMA but home sales have increased since 2012, Camden HMA represents only 6 percent of its popula- but high levels of foreclosures in the Sales Rental HMA have contributed to declines in Units Units tion. Total demand 2,675 2,725 average sales prices and have limited Under construction 300 770 growth in single-family home con- Notes: Total demand represents estimated struction activity. During the forecast production necessary to achieve a balanced period, demand is expected for 2,675 market at the end of the forecast period. Units under construction as of May 1, 2017. new homes (Table 1). The 300 homes A portion of the estimated 22,950 other currently under construction and a vacant units in the HMA will likely satisfy some of the forecast demand. The forecast Market Details portion of the 22,950 other vacant period is May 1, 2017, to May 1, 2020. Source: Estimates by analyst Economic Conditions ............... 2 Population and Households ..... 6 Housing Market Trends ............ 8 Data Profile ............................. 14 Economic Conditions 2 otal nonfarm payrolls in the The education and health services TCamden HMA have increased sector continued to increase during since 2012. As of the 12 months this period, although most other sectors ending April 2017, payrolls were only declined. The strong growth in jobs 5,500 jobs below their peak in 2006, from 2015 through the current date and 86 percent of the nearly 40,000 was, in part, an effect of the New jobs lost from 2007 through 2011 had Jersey Economic Opportunity Act of been recouped. During the 12 months 2013 that provided incentives for com- ending April 2017, total nonfarm pay- mercial investment in select industries, rolls in the HMA averaged 536,000 including logistics and manufacturing, jobs, an increase of 12,900 jobs, or and targeted low-income areas in the ANALYSIS 2.5 percent, from the average during state, including the city of Camden the previous 12 months (Table 2). Job (Camden County). growth in the HMA was particularly The largest percentage gain during the strong from 2015 through the current 12 months ending April 2017 was in date, with an average annual gain of the transportation and utilities sector, 12,300 jobs, or 2.4 percent. Growth which increased 14.7 percent, or by since 2015 has been significantly faster 2,900 jobs. The sector benefited from than the average annual addition of the substantial growth in e-commerce, 1,900 jobs, or 0.4 percent, from 2012 in which online sales, valued at $105.7 through 2014, and was nearly twice billion in the United States as of the the rate of expansion in the early first quarter of 2017, have grown 15 2000s. From 2001 through 2006, non- percent annually since the first quarter farm payrolls increased by an average of 2010 (U.S. Census Bureau). The of 6,800 jobs, or 1.3 percent, annually. growth in e-commerce has prompted COMPREHENSIVE HOUSING MARKET Jobs increased in 9 of 11 sectors but retailers to build warehouses near major declined in the manufacturing and the population centers to fulfill demand transportation and utilities sectors. from online sales. Amazon.com, Inc., Total nonfarm payrolls declined from leased an order fulfillment center in 2007 through 2011 by an average of Florence Township (Burlington County) 8,000 jobs, or 1.5 percent, annually. in late 2016, adding more than 500 Camden, NJ • Table 2. 12-Month Average Nonfarm Payroll Jobs in the Camden HMA, jobs to the transportation and utilities by Sector sector. Another distribution facility 12 Months Ending Absolute Percent was completed in Logan Township Change Change April 2016 April 2017 (Gloucester County) in December 2016 Total nonfarm payroll jobs 523,100 536,000 12,900 2.5 and was fully leased to XPO Logistics, Goods-producing sectors 58,400 59,900 1,500 2.6 Mining, logging, & construction 22,200 22,600 400 1.8 Inc., adding as many as 500 jobs to Manufacturing 36,200 37,200 1,000 2.8 the sector (Colliers International). Service-providing sectors 464,700 476,200 11,500 2.5 Wholesale & retail trade 96,800 97,900 1,100 1.1 The manufacturing sector increased Transportation & utilities 19,700 22,600 2,900 14.7 by 1,000 jobs, or 2.8 percent, during Information 7,000 6,800 – 200 – 2.9 Financial activities 29,000 30,400 1,400 4.8 the 12 months ending April 2017. Professional & business services 77,500 78,400 900 1.2 Despite a 31-percent decline in the Education & health services 92,400 95,400 3,000 3.2 manufacturing sector since 2000, the Leisure & hospitality 45,300 47,000 1,700 3.8 Other services 18,400 18,500 100 0.5 sector has been adding jobs in the Government 78,600 79,200 600 0.8 HMA since 2015. Holtec International, Notes: Numbers may not add to totals because of rounding. Based on 12-month averages through April 2016 and April 2017. Source: U.S. Bureau of Labor Statistics Economic Conditions Continued 3 a supplier of industrial equipment to the number of jobs in the education the energy industry, added 240 jobs in and health services sector increased the manufacturing sector at a newly 41 percent (Figure 1), more than constructed, $300 million technology any other sector, and nearly all the campus in the city of Camden. The gain was in the healthcare and social investment includes a technology assistance industry. Penn Medicine, a center and a manufacturing plant and medical affiliate of the University of may add up to several hundred more Pennsylvania in the city of Philadel- manufacturing jobs, as production phia, opened an outpatient healthcare expands through 2020. One of the center in Cherry Hill Township largest manufacturers in the HMA is (Camden County) in October 2016, ANALYSIS Lockheed Martin Corporation, whose adding jobs to the education and facility in Moorestown Township health services sector. An estimate of (Burlington County) employs about the number of full-time jobs added at 3,450 workers. Nearly 70 percent of the new facility is unavailable. the growth in manufacturing in the The wholesale and retail trade sector past year was in nondurable goods in- is the largest in the HMA and accounts dustries. Liscio’s Italian Bakery, Inc., for more than 18 percent of total opened a new food production facility nonfarm payrolls (Figure 2). Despite in Glassboro Borough (Gloucester an overall 3-percent decline from County) in June 2016, adding 70 jobs. 2000 through the current date, jobs in The education and health services the trade sector have increased since sector led job growth during the 12 2014, mostly because of gains in the months ending April 2017 with an retail trade subsector. Gloucester Pre- increase of 3,000 jobs, or 3.2 percent. mium Outlets opened in August 2015 COMPREHENSIVE HOUSING MARKET Most of this growth was in the health- in Gloucester Township (Camden care and social assistance industry, County), adding 800 jobs to the retail which added 2,500 jobs, or 3.0 percent. trade subsector. The wholesale and From 2000 through the current date, retail trade sector increased by 1,100 Figure 1. Sector Growth in the Camden HMA, Percentage Change, 2000 to Current Camden, NJ • Total nonfarm payroll jobs Goods-producing sectors Mining, logging, & construction Manufacturing Service-providing sectors Wholesale & retail trade Transportation & utilities Information Financial activities Professional & business services Education & health services Leisure & hospitality Other services Government – 40 – 30 – 20 – 10 0 10 20 30 40 50 Note: Current is based on 12-month averages through April 2017.