New Jersey Future Blog
Electric Yard Goats and Environmental Justice
October 13th, 2021 by Tim Evans
“Electric Yard Goats” may sound like the name of a band (or a baseball team), but they actually represent an important step in New Jersey’s effort to adopt electric vehicles as a means of reducing the transportation sector’s carbon footprint. Furthermore, they can help steer the air-quality and health benefits of vehicle electrification toward communities that have historically suffered the most from pollution generated by gasoline- and diesel-powered vehicles and by the state’s many polluting land uses. (The transportation sector is responsible for 41% of New Jersey’s total greenhouse gas emissions as of 2019, according to the New Jersey Department of Environmental Protection’s Greenhouse Gas Emissions Inventory.)
What is a yard goat, exactly?
Generally, a yard goat is a drivable vehicle designed to move individual freight-hauling containers (truck trailers or rail freight cars) from place to place within the confines of a single property, like a factory, warehouse, or rail intermodal terminal. The vehicles are not powerful enough to haul freight over the highway or rail networks. Rather, they are designed strictly for on-site movement, from one part of the business’s “yard” to another.
In the railroad world, “yard goat” typically refers to a locomotive that operates on a property—not necessarily owned by a railroad—that moves rail cars internally (e.g., a warehouse that needs to move individual cars between loading docks and storage sidings, or a steel mill that uses its own rail cars to move raw materials and intermediate products from one part of the facility to another).
In the trucking world, a yard goat—sometimes called a yard tractor or terminal tractor—is a small truck cab that is used to shuffle around trailers. Ports are major users of yard goats, which pull truck trailer chassis around the property in the process of transferring containers from one mode to another as they arrive from or depart onto the highway or rail network.
Electrifying the busiest port on the East Coast
This is where New Jersey’s new electric yard goats come in. A few months ago, 10 electric yard tractors made their debut at the Red Hook Container Terminal in Port Newark, kicking off a longer-term project to electrify all of the port’s diesel-powered vehicles. This is a significant undertaking, given the port’s environmental footprint and its outsized importance to the state’s economy.
The Port of New York and New Jersey is the second-busiest port in the country and the busiest on the East Coast. Thanks in no small part to the port, the goods movement industry is a pillar of New Jersey’s economy—employing roughly one out of every eight employed New Jersey residents—and is poised to keep growing.
Thousands of shipping containers pass through the port every day, requiring an army of trucks and trains to move them into, out of, and within the port’s various facilities. The port also uses all kinds of on-site cranes to transfer containers from one vehicle to another. All of these machines that keep the containers moving emit a steady stream of pollutants and greenhouse gases into the air. The CO2 emissions are a more widespread problem, contributing to the greenhouse effect that threatens the whole planet. But the more traditional pollutants primarily impact the port’s host towns and their neighbors, many of which are home to large populations of lower-income households and communities of color that have historically been saddled with noxious land uses, like factories and power plants.
Cleaning up past injustices
The Murphy administration has made environmental justice a priority, pledging to end the siting of environmental hazards in neighborhoods where low-income people and/or people of color live—and especially neighborhoods that are characterized by the presence of both low-income households and people of color. The New Jersey Department of Environmental Protection has created and now maintains a list of such “overburdened communities” and is charged with ensuring that state agency actions do not result in the siting of additional noxious land uses in these neighborhoods.
Just as importantly, environmental justice calls for prioritizing overburdened communities when focusing on cleaning up existing sources of pollution. The administration has so far demonstrated a commitment to doing so, as indicated, for example, by the strategies outlined in the Regional Greenhouse Gas Initiative (RGGI) Strategic Funding Plan and the creation of the RGGI Climate Investments Dashboard to track progress in environmental justice communities.
The administration’s blueprint for cutting back the state’s carbon footprint, the Global Warming Response Act 80×50 Report, has placed a strong emphasis on vehicle electrification. New Jersey Future and other groups have pointed out that the state is unlikely to meet its greenhouse-gas reduction goals through vehicle electrification alone, and that we should also be focusing on strategies that reduce people’s need to drive in the first place. But to the extent that vehicle electrification is front and center in the State’s climate strategy, we have argued that the State should prioritize electrifying larger and dirtier vehicles (e.g., transit buses, trucks, and port equipment) in and around neighborhoods that currently suffer from the worst air quality, rather than focusing on building electric vehicle charging stations in upscale suburbs.
The new electric yard goats work toward that goal. The port’s largest facilities are on the New Jersey side of the river in Newark, Elizabeth, and Bayonne. All three of these cities contain many neighborhoods that have historically been on the receiving end of the state’s polluting land uses (all 204 block groups in the city of Newark qualify as overburdened communities, as do 80 of the 82 block groups in Elizabeth and 47 of 52 in Bayonne). The electrification of the port’s many on-site diesel-powered vehicles would thus directly benefit many environmental justice communities via a reduction in airborne pollutants that cause asthma and exacerbate other health problems. Deploying the first round of electric port vehicles represents a small but significant step in the direction of ensuring that the State’s efforts to reduce its future carbon footprint (and clean up other fossil-fuel emissions in the process) actually improve environmental conditions in the communities that have shouldered a disproportionate share of the burden from the state’s industrial past.
Hispanic Heritage Month and the Growth of New Jersey’s Latinx Population
October 13th, 2021 by Bailey Lawrence
Some of my favorite stories are the ones my grandparents tell me about their journey from Bolivia to the U.S.—about finding their first jobs, struggling to “fit in,” and raising a family of six in a North Jersey suburb. Stories about finding a sense of community in an unfamiliar place.
My grandfather often reminds me that he would not be where he is today if not for other South American immigrants—as well as New Jersey and Pennsylvania natives—who helped him build a home, learn English, and ultimately attend Rutgers University (the first in a long line of Rutgers alumni).
Neighbors and relationships like these form the social and economic foundations of an increasing number of communities across the country. Indeed, following the recent release of 2020 United States Census Bureau data, both national policy organizations and popular media outlets highlighted the increasing diversity of the U.S. population (as well as the diminishing size of the country’s white population). According to a New Jersey Future article published in September, diversity in the Garden State is similarly growing. New Jersey’s overall diversity index—the probability that two randomly selected individuals will be members of different racial groups—increased from 59.3% in 2010 to 65.7% in 2020.
Latinx population growth has significantly contributed to such burgeoning diversity, both nationally and statewide. In 2020, “people of Hispanic origin” constituted the second largest racial or ethnic group in the U.S., and one of the fastest-growing racial and ethnic groups in the country. Only Asian Americans grew at a faster rate between 2010 and 2020 (35.6% vs. 23%), according to The Brookings Institution.
During the same decade, New Jersey’s Hispanic population grew by nearly half a million people (447,431), which equates to a growth rate of 28.8% between 2010 and 2020 (compared to the state’s overall population growth rate of 5.7%).
The Hispanic population also increased in all 21 New Jersey counties. While Hudson County maintained its plurality-Hispanic status, Passaic County shifted from plurality non-Hispanic white to plurality-Hispanic.
At the municipal level, the Hispanic population increased in all but 32 of New Jersey’s 565 municipalities. Among these municipalities, 23 contain an outright Hispanic majority, including seven whose Hispanic populations constitute 70% or more of their overall populations—Perth Amboy (83.2% Hispanic), Union City (82.4%), Dover (77.0%), West New York (75.8%), Victory Gardens (74.9%), Passaic (73.1%), and North Bergen (70.9%).
Additionally, 39 New Jersey municipalities are now plurality-Hispanic, compared to 25 municipalities in 2010. Among these municipalities, 15 attained plurality-Hispanic status in 2020, including Trenton, the state capital and home of New Jersey Future.
While we should certainly celebrate the growth of New Jersey’s Latinx population, the state’s increasing diversity should not invite complacency. Diversity alone is less valuable in a society in which Black and brown people still lack access to resources and opportunities—a society in which we still fail to equitably distribute power and ensure ownership in communities of color. This Hispanic Heritage Month—and every month—we must recognize that diversity is merely the starting point.
School district regionalization is an educational quality issue—and a cost-saving issue, and a land-use issue, and a segregation issue
October 13th, 2021 by Tim Evans
New Jersey’s system for delivering public education is particularly fragmented—it averages 28 school districts per county,1 the most of any state, and averages just under 15,000 residents per district, well below the national average of 23,344. It has more school districts than it has municipalities. This fractionalized landscape contributes to and exacerbates several of the state’s most intractable problems in ways that are not immediately apparent.
Last month, the Corporation for NJ Local Media hosted a webinar entitled “School Regionalization, and What It Could Mean for Your Community,” at which panelists discussed a bill (S3488) sponsored by Senate President Sweeney and others that aims to consolidate school districts that are already engaged in some sort of sharing arrangement (as when multiple K-8 districts all send to a regional high school with its own district). Such consolidations have the potential to affect as many as 275 school districts. The bill has passed both chambers of the legislature and awaits the governor’s signature.
The panelists focused primarily on the inconsistencies and inefficiencies that are introduced into the quality and costs of education by having so many small districts. When children come to a regional high school from multiple elementary schools that are each operated by their own individual districts, the lack of a uniform curriculum across the feeder elementary schools can create challenges for teachers in the high school. Feeder schools can also vary widely in terms of their ability to hire teachers with specialties in certain subjects, since the small size of the districts introduces greater variability into the size and composition of the tax bases from which the districts must raise revenues.
Merging school districts is most often promoted as a cost-saving measure, streamlining top-heavy administrative structures and creating economies of scale in the construction of school buildings, the hiring of teachers, the utilization of classroom space, and the transportation of students. The state’s school costs are indeed conspicuously high. New Jersey spends more per capita on public elementary and secondary education than all other states besides New York and Vermont—about $3,200 per capita as of the 2019 Annual Survey of State and Local Government Finances. This is 50% higher than the national average of $2,186 per capita.
Because New Jersey is so dependent on property taxes for raising revenue, and because school taxes represent the lion’s share of the overall property tax bill, the state’s high spending on education translates into the nation’s highest property tax bills—a median tax bill of $8,432,2 more than triple the nationwide median of $2,578, and substantially outpacing second-place Connecticut at $6,004. Consolidating school districts could help reduce duplicative expenditures and bring property tax increases under control.
But as New Jersey Future has written previously, school district consolidation is more than just a cost-saving measure; it could also help tame the state’s high housing costs and the resulting out-migration of people to less expensive states. Because New Jersey’s property tax bills are already so high, municipal leaders try to discourage residential development that might attract households with school-age children into town, necessitating increased school spending and subsequent property tax hikes. This widespread resistance contributes to a statewide undersupply of housing, putting upward pressure on home prices and chasing lower-earning households, including many young adults, out of the state in search of cheaper housing elsewhere.
The small size of the state’s districts may also contribute to New Jersey’s status as one of the most segregated states in the country—both by income and by race—despite being one of the most diverse states as a whole. In seeking to deter residential development through exclusionary zoning, many municipalities render themselves unaffordable to all but upper-income households, which reinforces racial segregation. Last year, New Jersey Future compared New Jersey to nearby states where public education is organized differently and found that concentrated poverty is more prevalent in counties with more fragmented public education systems than in states where school districts are county-wide or shared by larger numbers of municipalities. And, because segregation by income and segregation by race often coincide, counties with less fragmented school systems also tend to have much lower degrees of segregation for Black and Hispanic residents.
If New Jersey wishes to promote social equity by dismantling the processes that perpetuate residential segregation, mitigating its exclusionary land use incentives by organizing and funding public education at a higher level of government may be a good place to start.
There are multiple reasons to support the Sweeney school district consolidation bill. By itself, it will not solve New Jersey’s property tax, housing costs, or segregation issues, but it would be an important step in the right direction on all of these fronts.
12017 Census of Governments
2 2019 American Community Survey, one-year estimates
New Jersey Municipalities Share Green Infrastructure Planning Progress
September 13th, 2021 by Donovan Gayles
Why are towns across New Jersey creating plans for Green Infrastructure?
Have you ever wondered why plots of plants, shrubs, and trees exist in empty parking lots or on the sides of buildings? The issue of flooding and impaired water quality from stormwater—which carries pollutants that negatively affect lakes, rivers, and streams—persists across the state. Managing stormwater will be increasingly difficult due to increased rainfall induced by climate change. Green Infrastructure (GI), however, can help respond to the problem of stormwater runoff. Because stormwater poses a problem in multiple municipalities across the state, New Jersey adopted new stormwater rules that require municipalities to manage stormwater using GI. GI can build upon existing “gray” infrastructure (e.g., pipes) to cultivate a greener state. Utilizing this method will address flooding concerns, while enabling towns to take collective steps toward making communities more sustainable and resilient. Jersey WaterCheck compiles data about GI through several metrics to build transparency in stormwater management across the state.
Why share metrics related to green infrastructure?
Sharing metrics on GI is crucial, because it allows municipalities and communities to get a glimpse of where towns are in their respective green infrastructure implementation. It is no secret that GI has various environmental and social benefits, and each town should be taking steps to use it to improve its stormwater management. If the metrics are posted online and publicly accessible, this data can be used as a benchmark for assessing towns’ progress as well as how much assistance they might need as they use GI to reduce flood risk, improve water quality, and make streets more beautiful.
Findings
The new stormwater rules that went into effect on March 2, 2021 require NJ municipalities to update their Stormwater Control Ordinances (SCOs) to require GI in new major development projects. We examined which municipalities had updated their SCOs as required and which had gone above and beyond the NJDEP’s minimum requirements. We found that several towns, including Princeton, Elizabeth, and Jersey City, have gone above and beyond in their SCOs. These are just a few of the many towns that have exceeded the New Jersey Department of Environmental Protection’s (NJDEP’s) standards in ways such as strengthening the definition of major development and requiring GI for redevelopment projects. Out of the 43 towns surveyed and researched, 28 towns have updated their SCO and 24 have posted these updates on their respective websites. This data can be treated as a benchmark to determine how towns are doing and where they can enhance their planning and implementation of green infrastructure projects.
Are you a municipal representative who has not filled out the survey?
Click here to add your town’s information.
Background
Green infrastructure is a stormwater management strategy that enables stormwater and melting snow to soak into soil where they fall or to be captured for a beneficial reuse, such as irrigation or flushing toilets. It is a way to reuse natural water for environmental benefits. Examples include green roofs, cisterns, and rain gardens. GI can be used to confront the issue of runoff water, which leads to pollution and flooding.
GI is important because it supports the natural environments, public health, and economic development of towns and municipalities. Jersey WaterCheck seeks to increase the transparency of New Jersey’s water infrastructure, including by measuring GI progress.
Process
Jersey WaterCheck uses various metrics to gauge and measure how municipalities are using GI to bring economic, environmental, and social benefits to their communities. Through collaborative efforts, members of New Jersey Future and Jersey WaterCheck have developed several metrics for which data is gathered through municipal surveys. The metrics have been organized in the following categories:
- Stormwater Control Ordinance content, including questions that ask about:
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- GI for new major development
- GI for redevelopment
- Stormwater Control Ordinance availability, including questions that ask about:
- Whether municipalities have posted GI information on their website
- Current GI use, including questions that ask about:
- Acres of land on which the municipality currently uses GI for stormwater management
- Which towns have shared their MS4 outfall maps with the NJDEP
- Future GI use, including questions that ask about:
- Acres of land the municipality plans to use GI on for stormwater management
- Whether the municipal master plan includes GI goals
After meeting with various stakeholders, we considered these metrics to be the most important and straightforward to ask towns and municipalities about in reference to GI. After finalizing the list of metrics, we selected 43 towns to survey. We determined these towns based on the following criteria to ensure a diverse sample:
- Coastal, highlands, and pinelands
- Combined and separate sewer system
- Large and small towns
- Towns that do and do not include an overburdened community
- Towns at varying stages of GI implementation
Once the towns were selected and the metrics were finalized, we began the process of gathering information through research and interviews. We connected with these towns via email and telephone to complete the survey.
Overall, it is encouraging to see that many towns have updated their SCOs and that several have chosen to go above and beyond the minimum standard set by the NJDEP. Towns that have not yet updated their SCOs can use the metrics posted on Jersey WaterCheck to learn which towns’ ordinances may serve as good examples. As we take steps towards a greener New Jersey, using metrics to track progress can help keep towns on the road to green infrastructure implementation.
Census 2020: New Jersey’s Older and Increasingly Diverse Centers Are Now Leading The State’s Population Growth
September 13th, 2021 by Tim Evans
The demographic story of the 2010s in New Jersey was the return of population growth to the state’s walkable, mixed-use centers—cities, towns, and older suburbs with traditional downtowns. Driven in particular by the Millennial generation’s desire for live-work-shop-play environments in which a car is not necessarily needed for every trip, many of the state’s older centers experienced their biggest population increases since before the 1950s.
Newark, the state’s largest city, grew more than twice as fast as the rest of the state this decade, growing by 12.4% between 2010 and 2020 compared to 5.7% for the state as a whole. This is the first time in many decades that Newark has outpaced the statewide growth rate, and 2020 also marks the first time since 1985 that New Jersey has had a city with a population of more than 300,000. Newark’s population dipped below 300,000 in 1986 and continued to decline to a low of 262,862 in 1998 before reversing its slide.
Jersey City, the state’s second-largest city, has been perhaps the most visible star in New Jersey’s urban revival. Its resurgence actually predates the national trend by several decades (Jersey City’s population decreased in the 1950s, 60s, and 70s, but began growing again in the 80s). It grew slowly at first, lagging behind the statewide rate until 2010, but between 2010 and 2020 it grew at more than three times the statewide growth rate (18.1% vs. 5.7%). Like Newark, Jersey City once had more than 300,000 residents, but dropped below that mark in 1950, eventually falling to a low of 220,857 in 1979. But having added almost 45,000 people in the 2010s, its population now stands at 292,449 and is poised to once again surpass 300,000 in the coming decade if its 2020s growth looks anything like its 2010s growth.
The growth of traditional centers is not limited to the state’s biggest cities, however. The 124 New Jersey municipalities that best embody the concept of walkable urbanism and score high on all three New Jersey Future smart growth metrics—high activity densities (people + jobs per square mile), mixed-use downtowns, and well-connected, walkable street grids—together grew by more than 1.5 times the statewide growth rate, accounting for more than half (57.5%) of the statewide population increase in the 2010s, compared to only 13.6% of total growth in the 2000s. Most of these cities, smaller towns, and walkable, first-generation suburbs experienced their peak growth many decades ago. In fact, many of them actually lost population at some point since the 50s.
In contrast, the 158 municipalities with the most car-dependent development patterns—characterized by low densities, single-use subdivisions, and branching street networks that require circuitous car trips—grew by only half the statewide rate in the 2010s (2.8% vs. 5.7% statewide). This is a dramatic change from previous decades; this same group of municipalities grew by 7.1% between 2000 and 2010 and accounted for more than one-third (35.9%) of statewide population growth that decade after comprising 37.8% of the statewide increase in the 90s and 63.8% in the 80s. Younger generations’ preference for in-town living has substantially curbed demand for new subdivisions at the exurban fringe.
The state’s older centers also significantly contribute to New Jersey’s status as one of the most racially diverse states in the country. Much of the media coverage of the release of 2020 Census county and municipal populations focused on increasing diversity, both at the state and local levels. In New Jersey, it’s in the compact, walkable centers where the state’s diversity is most evident. Using a concept called the diversity index, which the Census Bureau uses to show “the probability that two people chosen at random will be from different race and ethnic groups”1 (the higher the score, the more diverse the community), New Jersey’s overall diversity index was 65.7% in 2020, up from 59.3% in 2010. Of the state’s 565 municipalities, 215 have a diversity index greater than 50%, and of these 215, 93 are among the 124 municipalities referenced above that score well on all three New Jersey Future smart growth metrics. Thus, among the municipalities with the most center-like development patterns, 75% (93 out of 124) have a diversity index of 50% or more. In contrast, among the 158 most sprawling, car-dependent municipalities that do not score well on any of the three metrics, only 22.8% (36 out of 158) exceed 50% on the diversity index. (The other two groups of municipalities—those scoring well on either one or two of the metrics—follow the same pattern, in which a greater number of high scores on smart growth metrics is associated with a higher likelihood of having a diversity index of 50% or more.)
New growth in older centers is happening, in part, thanks to the rise of redevelopment—the reuse of land that had previously been developed for some other purpose—as New Jersey’s default development pattern. The 270 New Jersey municipalities that were at least 90% built-out as of 2007 together accounted for nearly two-thirds (65.1%) of the state’s population increase in the 2010s, after having contributed just 12.2% of the statewide increase in the 2000s. That the state’s population growth is now dominated by redevelopment areas represents a remarkable shift compared to the several preceding decades, which were characterized by low-density growth on the suburban fringe. The trend toward redevelopment illustrates that “built-out” does not mean “full,” and that there are plenty of opportunities to absorb new residents in the state’s cities, towns, and older suburbs.
Creating new opportunities for growth in these older centers is key to attracting and retaining members of younger generations who are looking for an in-town lifestyle. New Jersey should focus on reforming local zoning to allow more of the kinds of housing younger households are looking for (e.g., townhouses, duplexes, small apartment buildings, apartments above stores, smaller single-family homes on small lots) in the kinds of places they want to live. Encouraging growth in already-developed areas has the added benefit of using our transportation and energy infrastructure more efficiently and avoiding the building of new sprawling infrastructure and then having to maintain it. The move to redevelopment also takes pressure off the state’s remaining open lands, helping to preserve the state’s overall quality of life by allowing those lands to continue being used for agriculture, recreation, and wildlife habitats.
1The diversity index is dependent on the number of different mutually-exclusive race categories that are used in the analysis. The Census Bureau uses eight categories in its analysis. New Jersey Future’s analysis condenses these to five—non-Hispanic white, non-Hispanic Black, Hispanic, non-Hispanic Asian, and other—by grouping four of the Census Bureau’s categories into the “other” group, because their numbers are individually very small in New Jersey. Using five categories, the index has a maximum value of 0.8, or 80%.
Lead in Drinking Water in Public Schools: State Assistance Accelerates the Solution in New Jersey
September 13th, 2021 by Gary Brune
When New Jersey’s public schools were last tested for lead in drinking water in 2016, the extent of potential exposure was pervasive. Based on research conducted by the Trenton Bureau of the USA TODAY Network in 2019, approximately 480 school buildings across a third of the state’s school districts recorded lead levels that exceeded 15 parts per billion, the action level set by the federal government. Given the severity of the problem and the significant cost of remediation, it was clear that state assistance was necessary to protect students and teachers.
On July 1, 2021 Governor Murphy signed legislation (A-5887) that appropriated $6.6 million in state grants for water infrastructure improvements in public schools. This represents the first issuance of grants authorized under the Securing Our Children’s Future program administered by the NJ Department of Education (NJDOE). A total of $100 million in state bonds was approved for this initiative by voters in November 2018. The subsequent regulations promulgated by the NJDOE identified two categories of eligible projects: improvements to drinking water outlets and remediation of major segments of a school’s water distribution system (e.g., replacement of lead service lines or wells).
The approved grants include a $4.1 million appropriation for Jersey City, as well as Shore Regional’s (Monmouth County) plan to use part of its $70,721 grant to install an automated flushing system, a new, low-cost technology that has been successfully implemented elsewhere to keep lead from leaching from pipes into water.
Anecdotally, it appears that the pandemic limited the number of applications submitted to the NJDOE as school districts focused on securing federal aid to ensure ongoing operations. According to the Department, the next round of grants (funded by approximately $93 million in remaining funds) will be issued after the districts perform their cyclical testing of lead in drinking water, which must be completed by the end of June 2022. (This link provides an overview of the NJDOE’s testing-related regulations under N.J.A.C. 6A:26-12.4.) The NJDOE’s approach will help ensure that the next round of grant applications is based on the latest testing results.
The NJDOE issued a broadcast on July 2, 2021 notifying those districts whose grants were approved by the Legislature. The full list of substantially approved grants can be accessed on the Department’s School Facilities webpage.
New Jersey Needs More “Missing Middle” Housing
July 19th, 2021 by Tim Evans
- New Jersey’s housing costs are among the highest in the country. The state ranks seventh in median home value and fourth in median rent.
- The state is losing younger households to other states, and evidence points to high housing costs as one of the reasons.
- To create more of the kinds of homes that younger households are looking for—in the neighborhoods they want to live in—New Jersey should consider revising the zoning and parking requirements that determine what kind of housing gets built and where.
A recent Rutgers-Eagleton Poll, in collaboration with the Housing and Community Development Network of New Jersey, found that 90% of New Jerseyans are worried about the cost of housing in the state, with 55% considering it a “very serious” problem and another 35% saying it is “somewhat serious.” And 80% feel the same way about finding an affordable place to rent (49% “very serious” and 32% “somewhat serious”).
They are not wrong to worry—New Jersey is an expensive state. As of the 2019 one-year American Community Survey1, New Jersey’s median gross rent of $1,376 is the fourth-highest in the nation after Hawaii, California, and Maryland. And on median home value (self-reported), it ranks seventh after Hawaii, California, Massachusetts, Colorado, Washington, and Oregon.
To a certain extent, this is a function of New Jersey’s status as a high-income state—our median household income of $85,751 is the third-highest in the country after Maryland and Massachusetts. It is broadly true that the states with the highest housing costs also tend to have the highest incomes (Hawaii, California, Washington, and Colorado all also appear in the top 10 for household income). Typically, the higher a household’s income, the more it is able to spend on housing.
Living with Parents
For younger New Jerseyans on the lower end of the income ladder, however, high home prices and rents can present a significant barrier to forming their own households and staying in New Jersey when they do move out on their own. New Jersey has the highest incidence among the 50 states of people ages 18 to 34 living with their parents (45.4%, or nearly half). Only Connecticut (41.7%) and Rhode Island (41.1%) also exceed 40%, with notoriously expensive California just behind at 39.5%. (The national rate is 34.0%.) When faced with an expensive housing market, many younger New Jerseyans choose to delay getting their own place.
Paying More Than You Can Afford
An extended post-graduation stay with parents is one way to save on rent or to save up to buy a house. But not everyone finds this option feasible or desirable. Some will just bite the bullet and spend more on housing than they can realistically afford. Indeed, New Jersey has the fourth-highest rate among the 50 states of households paying more than 30% of their gross income on housing costs (such households are considered “housing-cost burdened”), behind only California, Hawaii, and New York. The percentage is unsurprisingly higher among renters than homeowners, as is true elsewhere—nationally, 48.4% of renter households are cost-burdened, compared to only 21.3% of homeowner households. But New Jersey actually only ranks 12th-highest when looking exclusively at the rate of housing cost burden among renters—its rate of 49.0% is only slightly higher than the national rate.
Where New Jersey stands out is in its cost-burdened rate among households that own their homes, which, at 28.9%, is the third-highest rate in the country behind Hawaii and California. This is likely due—in part—to New Jersey’s notoriously high property taxes. New Jersey’s median real estate tax bill of $8,432 is the highest in the country by a wide margin and one-third higher than second-place Connecticut ($6,004). In New Jersey, homeownership is not necessarily a reliable hedge against rising housing costs, because of the potential to face rising property tax bills.
Moving Out of State
Given New Jersey’s high housing costs, some younger people seeking to form their own households simply choose to leave the state entirely. In 2017, New Jersey Future found that 22-to-34-year-olds (an age range then consisting entirely of members of the Millennial generation) were moving to compact, walkable towns (consistent with the national media narrative at the time), but that Millennials also appeared to be leaving the state in large numbers. A subsequent 2018 analysis confirmed that Millennials were indeed underrepresented in New Jersey’s population, compared to their share of the population nationwide, raising the question of where New Jersey’s “missing Millennials” had gone. Further research into the destinations of New Jersey’s out-migrating Millennials suggested that many of them were relocating to other parts of the country where they could find the walkable, mixed-use neighborhoods they were looking for, but where they could actually afford to buy or rent a home.
Constraints on Supply and Induced Demand
What can New Jersey do to bring down the costs of housing so that young people can afford to live near where they grew up if they so desire? A seemingly obvious solution is to increase the supply of the kinds of housing younger households are looking for, in the kinds of places where they want to live. But this is easier said than done; housing markets are constrained both by a finite supply of land and by government regulation in the form of local zoning. Additionally, many markets in New Jersey have such high demand that increasing supply will not realistically reduce housing prices, and in some cases will actually induce further demand. Would-be suppliers (i.e., residential developers) may have a sense of what kind of housing the market wants, but they may not be able to build it fast enough or build it in the right places, because local zoning prevents them from doing so. And when they are able to build it, induced demand can simply push prices higher.
Building new homes in the right places is an important part of the solution. Today’s young adults don’t want the suburban tract home at the end of the cul-de-sac that characterized their parents’ generation. They want walkable neighborhoods and traditional downtowns where they don’t need to drive 3 miles every time they leave the house. And they want other housing options besides a single-family detached home on a big lot, like townhouses, duplexes, small apartment buildings, apartments above stores, and smaller single-family homes–options that were once common but are now sometimes referred to as the “missing middle” between single-family detached homes and large apartment complexes. Even older Millennials who may have lived in the “city” when they were younger but are now looking for a bit more space are not moving to the same kinds of “suburbs” as previous generations and are instead gravitating toward smaller centers.
Removing Barriers and Building in Affordability
The good news is that New Jersey already contains many smaller cities, walkable suburban downtowns, and transit-adjacent neighborhoods that offer the live-work-shop-play balance that many younger households (and aspiring future households) are seeking. Oftentimes these places do not contain an adequate supply of smaller units that are relatively more affordable than their larger counterparts. The question is how to start producing more housing in these places of the sizes and types that prospective buyers and renters want. This generally means removing barriers to the production of these housing types so that suppliers are free to try to catch up with demand while simultaneously looking to build in more permanent affordability for lower income residents. Steps New Jersey can pursue (and which some other states, counties, and cities are already pursuing) include:
- Accessory dwelling units: Allow the creation of accessory dwelling units (ADUs) (e.g., in-law suites, above-garage apartments, etc.) on single-family lots as-of-right. Los Angeles County offers an example, having recently modified its ordinances to make the creation of ADUs much easier. AARP has developed a model ordinance for state and local governments that are interested in pursuing this option. ADUs would also help older residents remain in their communities as they age.
- Zoning reform: Increase the production of “missing middle” housing types by curtailing municipalities’ ability to zone for nothing but single-family detached housing. Removing restrictions on other housing types would free up markets to expand housing options. The city of Minneapolis abolished single-family zoning citywide in 2018, and other cities are considering similar moves; the website Strong Towns provides a good recent review of where this movement is enjoying some success, including a few cities in California. Oregon even took the bold state-level step of passing a law in 2019 that requires all cities with populations of at least 25,000 to allow two-, three-, and four-unit structures, as well as townhouses, in any neighborhood previously zoned only for single-family detached homes. Oregon thus offers a model for state-level action that does not wait for individual cities and towns to loosen zoning on their own.
- Reduce or eliminate parking minimums: One way to make room for more housing is to devote more space to homes and less to car storage. Parking takes up space—and costs money—that could otherwise be devoted to producing more housing units. Reducing parking requirements would likely reduce builders’ construction costs per unit, pulling prices downward. In 2017, Buffalo became the first city to eliminate minimum parking requirements for all new development citywide, which has led to more shared parking and fewer new parking spaces in the densest parts of the city and has allowed some new projects to proceed that might not have been financially viable under the old requirements. The smaller city of Fayetteville, Arkansas actually beat Buffalo to the punch by two years, although it eliminated parking requirements only for commercial development. A bill is working its way through the California legislature that would eliminate parking minimums for new projects located in neighborhoods served by transit. Berkeley has not waited for the state, doing away with parking minimums in almost all residential neighborhoods citywide. Existing surface parking lots also serve as a sort of urban land bank for built-out areas, offering opportunities for infill development and higher-density housing. In New Jersey, Metuchen built the Woodmont Metro at Metuchen Station project on a former commuter surface parking lot, creating new housing options in a town that had been dominated by single-family detached homes and improving its downtown walkability in the process.
- Regionalizing school districts: New Jersey’s public-school landscape is particularly fragmented. It averages 28 school districts per county,2 the most of any state, and averages just under 15,000 residents per school district, well below the national average of 23,344. Such fragmentation results in duplicative costs for administration, buildings, and equipment and drives up the property taxes that fund public education, which in turn drives up overall housing costs. Moving toward more regional school districts would create economies of scale and would likely help bring costs and property taxes down. Increasing the geographic size of school districts would also mitigate competition for taxable property among districts and reduce local government resistance to residential development, clearing the path for developers to build more housing to meet demand.
- Long-term affordability mechanisms: As neighborhoods become more desirable, prices will rise. To help ensure that our most desirable and opportunity-laden communities are available to people of all incomes and races, it is important for towns to proactively remove a percentage of housing from the investor marketplace and keep rents and sale prices affordable for the long-term. This can be accomplished through a number of mechanisms including inclusionary housing development with proper affordability targeting and controls; buying down market rate houses and apartment units and putting in place long-term deed restrictions; and developing long-term ownership structures like nonprofit owned housing complexes and community land trusts.
1This and all subsequent housing and income statistics are from the 2019 one-year American Community Survey unless otherwise indicated.
2Using data from the 2017 Census of Governments
New Jersey Behind the Curve on Broadband Funding
July 19th, 2021 by Kimberley Irby
The coronavirus pandemic highlighted the extent of the digital divide in New Jersey. As we come out of the orders to stay at home, an ongoing issue is incomplete data on internet access, speed, and prices. One suggested solution is to create an office at the state level to coordinate the data collection effort. Beyond this, state level offices can also communicate, coordinate, plan, and fund broadband efforts in general.
The Pew Charitable Trusts has published research showing that efforts to bolster broadband at the state level have been ramping up, likely due to the way the COVID-19 pandemic has revealed gaps in accessibility and has contributed to more reliance on remote work moving forward. These efforts are becoming increasingly prevalent as more states establish dedicated programs to coordinate their broadband initiatives, designate entities to run those programs, and allocate federal funds for pandemic relief to connect those in need.
More recently, Pew has released a database for state broadband programs featuring information about broadband agencies, funding programs, task forces, and offices. The database allows filtering by state on an interactive map. According to the data, New Jersey is one of only ten states that does not currently have some sort of funding mechanism for broadband. Examples of funding mechanisms include state grants and loans for internet service providers, nonprofit utility cooperatives, and local governments. Furthermore, though New Jersey currently has an agency involved in broadband projects and a task force dedicated to broadband issues, it is not one of the 26 states that have a centralized office for broadband projects.
There have been several calls for governments at every level to ensure that every American has access to high-speed internet. As with other types of critical infrastructure, a stable, long-term funding source is essential to ensuring adequate accessibility and quality. While having a centralized broadband office is not yet the norm, having a funding mechanism is now fairly widespread, and it would serve New Jersey well to join the 40 other states that have one. With dedicated funds to support the deployment of high-speed internet, New Jersey could become a model for the rest of the country in guaranteeing broadband for all.
Strategizing from Sussex to Stone Harbor: Water Infrastructure in New Jersey’s Climate Strategy
July 19th, 2021 by Andrew Tabas
When thinking about climate change in New Jersey, it is easy to focus on the most obvious threat: coastal flooding from sea level rise. However, climate change will have a number of effects on New Jersey’s drinking water, wastewater, and stormwater infrastructure as well. The New Jersey Department of Environmental Protection’s Draft Climate Change Resilience Strategy recognizes these issues and is an important first step toward adapting New Jersey’s drinking water, wastewater, and stormwater infrastructure for an uncertain future.
The New Jersey Department of Environmental Protection’s Draft Climate Change Resilience Strategy (“the Strategy”), released on April 22, 2021, is NJDEP’s first major step toward climate change adaptation, as opposed to mitigation. The focus on adaptation makes the Strategy “a critical recognition that climate change is here and will continue to impact our communities for decades to come,” according to New Jersey Future (NJF) Executive Director Pete Kasabach. Figure 2 explains the difference between mitigation and adaptation.
The Strategy highlights several risks to drinking water infrastructure posed by climate change. First, flooding and storms can damage aging infrastructure. Second, current technology and standards were not set up to treat increased salt levels. Third, droughts, increased nonpoint source pollution (e.g., fertilizer runoff from farms), and saltwater intrusion could threaten water supply. To address these issues, New Jersey should invest in its drinking water infrastructure systems. Potential investments include increasing water efficiency, building new water storage, and relocating treatment plants, according to the Environmental Protection Agency’s website on climate impacts on water utilities. In its recommendations for the Strategy, NJF advocates for improved resilience training for drinking water and wastewater utility leaders and asks for more information on water infrastructure in future versions of the Strategy. Ensuring access to safe drinking water, one of the most important environmental justice issues, will protect public health across the state.
Protecting and improving wastewater infrastructure in the face of climate change is essential as well. The Strategy notes that sewer systems must be elevated and protected from flooding. While this is an important issue, the Strategy does not discuss the risks of increased combined sewer overflows (CSOs). In towns with combined sewer systems, wastewater and stormwater enter the same pipes and are treated at wastewater treatment plants. During intense rain events, the volume in these pipes becomes too much for the treatment system to handle, so the sewage overflows directly into rivers, streets, and homes. As climate change brings more frequent and intense rainstorms, the risk of CSOs will increase. NJF recommends that future versions of the Strategy add a new action to address this issue: “incorporate climate change projections into CSO planning and forthcoming permits.” Smart planning in cities with combined sewer systems can reduce the negative health effects that come from exposure to sewage.
The Strategy does an excellent job of addressing green infrastructure for stormwater management. Green infrastructure involves the use of practices that mimic the natural water cycle to capture stormwater and allow it to trickle into the ground. The Strategy highlights the benefits of green infrastructure, which include improving water quality, managing nuisance flooding, and improving public health. It is an encouraging sign that the Strategy highlights the importance of green infrastructure and emphasizes that it should be built first in the communities that need it most. NJF recommends three improvements to the Strategy’s treatment of stormwater. First, the Strategy should go beyond discussing the Stormwater Rule changes adopted in March 2020 by offering a preview of additional Stormwater Rule changes anticipated through the New Jersey Protect Against Climate Threats initiative. Second, the Strategy should describe a path forward for the implementation of Complete and Green Streets. Third, the Green Acres open space funding program has a beneficial opportunity to prioritize green infrastructure, as described by Jersey Water Works. These changes to the Strategy will help to bring the benefits of green infrastructure to communities across New Jersey.
Making drinking water, wastewater, and stormwater infrastructure resilient is essential for adapting to climate change. New Jersey’s Draft Climate Change Resilience Strategy offers promising first steps in all three of these areas. Read NJF’s full comments on the Climate Strategy to learn more.