Union (NJ) Investor Pulse Report (2025-Q4)

In Union County, landlords collectively own 29,030 Single Family Residential (SFR) properties, representing 20.6% of the total SFR market. Individual landlords hold the vast majority, accounting for 23,688 properties or 81.6% of the investor-owned portfolio, significantly overshadowing company ownership at 5,506 properties (19.0%).

The investor-owned portfolio is overwhelmingly rental-focused, with 28,525 properties (98.3%) designated as rented or non-owner-occupied. This high proportion underscores the primary objective of these investors in providing housing for rent rather than owner-occupancy.

A notable trend in landlord holdings is the strong preference for cash acquisitions, with 18,545 properties held in cash compared to 10,485 properties that are financed. This indicates a significant portion of investor capital is un-leveraged, potentially signaling financial resilience or a preference for simpler asset management.

While individual landlords own the majority of properties, they also represent a disproportionately higher number of entities, with 29,225 individual landlords compared to 3,774 company landlords. This suggests that individual investors typically manage smaller portfolios, reinforcing the 'mom-and-pop' nature of the market.

The average portfolio size for individual landlords stands at approximately 0.81 properties per entity (23,688 properties / 29,225 entities), whereas company landlords average around 1.46 properties per entity (5,506 properties / 3,774 entities). This difference highlights that company entities, while fewer in number, tend to hold slightly larger portfolios on average.

Landlords in Union County consistently secure a substantial pricing advantage over traditional homeowners. In Q4 2025, landlords paid an average of $590,665 per property, a significant $223,741 less than homeowners who paid $814,406, representing a 27.5% discount.

This pricing disparity was not an isolated event but a consistent trend throughout 2025, with landlords maintaining a considerable discount each quarter. The gap fluctuated from 20.9% in Q1 to 28.8% in Q2, further widening to a peak of 30.7% in Q3 before slightly narrowing to 27.5% in Q4.

Comparing Q4 2025 landlord acquisition prices of $590,665 to the average of $458,166 from the 2020-2023 pandemic-era boom reveals a 28.9% appreciation. This substantial increase demonstrates the significant price growth in the Union County SFR market over recent years.

The persistent discount achieved by landlords suggests sophisticated market knowledge, efficient acquisition processes, or a focus on properties that may not appeal as strongly to traditional owner-occupants. This strategic buying positions landlords advantageously in the local market.

While the number of distinct SFR properties purchased by landlords in 2025 is not explicitly detailed in the acquisition timeframe data, other sections confirm significant buying activity. For example, 274 properties were acquired by landlords in Q4 2025, highlighting that these average prices reflect actual, robust market participation.

In Q4 2025, landlords demonstrated significant buying activity in Union County, acquiring 274 SFR properties. This accounted for a substantial 24.7% of all 1,110 SFR purchases in the market during the quarter, indicating their continued influence on the local housing supply.

Mom-and-pop landlords (Tiers 01-04, owning 1-10 properties) were the driving force behind this activity, collectively purchasing 262 properties. This segment accounted for an overwhelming 95.6% of all landlord acquisitions, reinforcing their role as the primary investors in the region.

Single-property landlords (Tier 01) showed the highest level of activity within the mom-and-pop segment, purchasing 178 properties through 232 distinct entities. This suggests a continuous influx of new, smaller investors entering the market, seeking to establish or expand their initial portfolios.

Mid-size landlords (Tiers 05-08, 11-1000 properties) also contributed to Q4 purchases, with the 11-20 property tier acquiring 7 properties and the 21-50 property tier adding 5 properties. This indicates a balanced acquisition strategy across smaller and mid-sized investor segments.

In stark contrast to the robust activity of smaller investors, institutional investors (Tier 09, 1000+ properties) made no purchases in Union County during Q4 2025. This signals a clear divergence in market behavior, with larger entities opting for divestment or inactivity while smaller players accumulate assets.

The concentration of Q4 activity within the mom-and-pop segment underscores the decentralized nature of the Union County investor market, where individual and small-scale operations collectively wield significant purchasing power. Their collective buying volume far surpasses that of any larger, more centralized entities.

The distribution of investor-owned SFR properties in Union County highlights the overwhelming dominance of smaller landlords. Mom-and-pop investors (Tiers 01-04, owning 1-10 properties) collectively control an impressive 96.6% of the market, totaling 29,175 properties.

Within the mom-and-pop segment, single-property landlords (Tier 01) represent the largest individual category, holding 19,549 properties, which accounts for 64.7% of all investor-owned SFR. This demonstrates that first-time and small-scale investors are the primary drivers of the rental housing supply.

Two-property landlords (Tier 02) are also a significant component, owning 6,875 properties (22.8% of the total). When combined with the 3-5 property (7.4%) and 6-10 property (1.7%) tiers, the concentration of ownership within the mom-and-pop category is undeniable.

In stark contrast, institutional investors (Tier 09, owning 1000+ properties) maintain a minimal footprint in Union County, holding only 22 properties, which translates to a mere 0.1% of the total investor-owned SFR. This significantly challenges any narrative of institutional takeover in this market.

Mid-size landlords (Tiers 05-08, 11-1000 properties) represent a modest share, with the 101-1000 tier owning 550 properties (1.8%) and the 11-50 property tiers collectively holding less than 2% of the market. This further solidifies the mom-and-pop stronghold.

The composition of landlord ownership in Union County shifts dramatically with portfolio size, illustrating distinct strategies between individual and company investors. Individual investors maintain a strong hold on smaller portfolios, accounting for 85.7% of single-property (Tier 01) and 89.3% of two-property (Tier 02) holdings.

A clear crossover point occurs at the 6-10 property tier, where company ownership surpasses individual ownership. In this segment, companies control 344 properties (66.4%), significantly more than the 174 properties (33.6%) held by individuals.

This trend of increasing company dominance continues into larger mid-size portfolios. In the 11-20 property tier, companies own 76.2% (240 properties), and this concentration further escalates to 86.1% (124 properties) in the 21-50 property tier.

The data reveals that while individual investors are the backbone of the small-scale rental market, companies are strategically building larger, more centralized portfolios. This suggests a clear bifurcation in investment approach, with individuals favoring smaller, often entry-level, investments and companies pursuing greater scale.

The high percentage of individual ownership in the mom-and-pop tiers underscores the accessibility of SFR investing to single individuals or families. Conversely, the swift rise of company ownership in mid-sized tiers highlights the operational advantages or capital requirements associated with managing larger portfolios.

Within Union County, investor-owned SFR properties exhibit clear geographic concentration at the zip code level. NJ-Union-07060 stands out as the area with the highest count, containing 4,843 investor-owned properties and demonstrating a substantial ownership rate of 61.9%.

Following closely, NJ-Union-07062 registers 2,865 investor-owned properties with a high ownership rate of 52.9%. NJ-Union-07036, while having a lower ownership rate of 21.7%, still contributes significantly with 2,466 investor-owned properties, indicating a broader distribution in that area.

A unique pattern emerges in several smaller zip codes, such as NJ-Union-07059, NJ-Union-07067, and NJ-Union-07017, all displaying a 100.0% investor ownership rate. This indicates highly specialized or smaller sub-markets where every SFR property is investor-owned, which often implies a very limited total SFR inventory in those specific areas.

The concentration in NJ-Union-07060 and NJ-Union-07062 suggests these areas are prime targets for investors, likely due to factors such as rental demand, property values, or market stability. Their high counts combined with high percentages confirm strong investor penetration.

Conversely, some zip codes, like NJ-Union-07040 and NJ-Union-07111, have an undefined number of investor-owned properties, precluding a full analysis of their market dynamics. This data limitation means the full geographic spread of investor activity might be even more nuanced than the available data suggests.

Landlords in Union County exhibited robust buying behavior throughout 2025, solidifying their position as net accumulators of SFR properties. In Q4 2025 alone, they purchased 346 properties while selling only 63, resulting in a strong buy/sell ratio of 5.49x.

This net buying trend is consistent across the year, with landlords acquiring 1,616 properties and selling 339 properties in 2025, leading to a net gain of 1,277 properties. This demonstrates sustained confidence in the Union County housing market among landlords.

The pattern extends to previous years, as landlords were also net buyers in 2024, purchasing 1,693 properties against 308 sales. This long-term trend underscores a consistent strategy of portfolio expansion among the majority of landlords in the region.

A stark contrast emerges when analyzing institutional investors (1000+ tier). Unlike the overall landlord trend, institutions have consistently been net sellers. In 2025, they sold 17 properties while only buying 5, resulting in a net divestment of 12 properties. This trend was also observed in 2024, with 9 sales against 2 buys.

The divergence in transactional behavior between overall landlords and institutional players indicates differing market outlooks or portfolio management strategies. While smaller landlords are actively accumulating, larger institutional entities appear to be reducing their exposure in Union County.

Due to data limitations in this section, historical average buy and sell prices for all landlords and the percentage of landlord-to-landlord transactions cannot be analyzed. However, the clear net buyer status for overall landlords signals a healthy demand-side contribution from this segment.

Landlords played a substantial role in the Union County SFR market in Q4 2025, participating in 346 transactions, which accounts for 20.2% of the total 1,713 SFR transactions. This highlights their consistent engagement in the market's liquidity.

Transaction volumes varied significantly across investor tiers. Single-property landlords (Tier 01) were the most active, accounting for 233 transactions. The mid-size small landlord (6-10 properties) and two-property (2 properties) tiers also showed notable activity with 14 and 62 transactions, respectively.

Average purchase prices also differed by tier, with single-property landlords (Tier 01) paying an average of $615,894. Interestingly, small-medium landlords (Tier 21-50) secured the highest average price paid at $767,800, while small landlords (Tier 6-10) paid the lowest at $489,704, indicating varied acquisition strategies across investor sizes.

Inter-landlord trading activity was relatively low across most tiers. For single-property landlords, only 15 transactions (6.4%) involved buying from another landlord. The small landlord (6-10 properties) tier showed the highest inter-landlord percentage at 21.4% (3 transactions out of 14).

The absence of institutional investor (Tier 09) transactions in Q4 2025 further emphasizes their retreat from buying activity in this specific market, aligning with their net seller status observed historically.

The price spread between the highest ($767,800 for Tier 21-50) and lowest ($489,704 for Tier 6-10) average purchase prices among active tiers in Q4 is $278,096. This substantial difference suggests that various tiers are targeting distinct segments of the market or employing different pricing strategies.

Comparing Q4 transaction activity to overall ownership distribution (Section 8), Tier 01 landlords, who own 64.7% of all investor-owned properties, also accounted for a proportional 67.3% (233/346) of landlord transactions in Q4. This consistency indicates that the largest segment of owners remains highly active in the market.