Two to Four Family Homes Outperform Larger Apartment Buildings in Bergen County Rental Market

Written by:

Rudi Davis

Date:

24 Feb 2026

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Investors targeting northern New Jersey should focus on small multifamily residential properties in commuter rail towns, according to Cathy Banu, team leader of the Cathy Banu Real Estate Team at Keller Williams Village Square Realty. Banu warns that office buildings and short-term rental models in Bergen County present significant risks and are unlikely to deliver stable returns.

Focused Strategy for Bergen County Investors

National real estate headlines often promote broad strategies. In Bergen County, the opportunity is more specific. Banu advises investors to focus on two- to four-family residential properties positioned for long-term rental income, while avoiding office buildings and short-term rental models.

“I would avoid office buildings,” Banu says. “Offices are just not something that are very strong around here.”

The recommended strategy is to acquire small multifamily properties in commuter rail towns, hold them for rental income, and benefit from long-term appreciation driven by limited inventory. This approach demands geographic precision and a focus on property type. Investors chasing trends such as office conversions or Airbnb-style rentals are seeing poor results, while those who acquire practical, two- to four-family rentals in the right locations are experiencing steady demand and rising values.

Rental demand in Bergen County remains strong. Multiple qualified tenants often express interest before a property closes. This robust demand is concentrated in towns with rail access and strong school systems. Larger apartment buildings and other property types are not seeing the same level of tenant interest or value growth.

Why Two to Four Family Homes Perform Better Than Larger Buildings

The performance difference between small multifamily properties and larger apartment buildings reflects tenant preferences and local market conditions. Banu observes that two- to four-family homes consistently outperform larger complexes in Bergen County, and the advantage is growing.

“Two family homes, I would definitely recommend for investments,” Banu says. “I don’t really think the larger apartment buildings are doing as well as the two to four-family homes.”

Smaller multifamily properties appeal to a wider range of tenants, including families seeking single-family-style living with greater privacy and professionals who prefer quieter buildings. These properties are also less expensive to acquire and manage, and they offer flexibility in tenant selection and lease arrangements.

Larger apartment buildings, on the other hand, have higher operating costs, require more complex management, and are more vulnerable to tenant turnover. In a market with strong demand but limited inventory, small multi-family properties are better positioned to deliver stable rental income and appreciation.

Geographic focus is essential. Banu recommends targeting towns with commuter rail access to New York City, such as Ridgewood, Glen Rock, Westwood, and Ramsey. These areas attract renters who work in Manhattan but want suburban amenities and strong schools.

“Anywhere that you can commute from New York City train towns, such as Ridgewood, Glen Rock, Westwood, and Ramsey, wherever the train comes in those towns, because many renters want to be there,” Banu says.

Investors who buy in these towns benefit from both rental income and appreciation. Housing scarcity in Bergen County, driven by aging homeowners and low inventory, continues to support property values and rent growth.

Risks of Office Buildings and Short-Term Rentals in Bergen County

While small multifamily properties offer a clear path to stable returns, Banu warns that office buildings and short-term rental models are likely to generate losses for investors. Office buildings in Bergen County face weak demand and limited near-term recovery prospects.

“I would avoid office buildings,” Banu says. “Offices are just not something that are very strong around here.”

The shift to remote and hybrid work has sharply reduced the need for suburban office space. Many companies have downsized, and most employees now either work from home or commute to Manhattan, bypassing local office parks. This trend shows no signs of reversing, leaving office properties with high vacancies and declining values.

Short-term rental models like Airbnb are also poor fits for Bergen County. Banu is clear that these investments do not deliver strong local results.

“I do see a risk if you’re looking at Airbnbs, like people, investors that are looking at short-term rentals,” Banu says. “I would not recommend doing that. I don’t see that as being a great investment at this point, not in Bergen County.”

Short-term rentals face regulatory hurdles, limited tourist demand, and competition from hotels. Investors pursuing this strategy often face low occupancy rates, high costs, and regulatory complexities. In contrast, long-term rentals provide steady cash flow, reliable tenant demand, and fewer legal risks.

Strong Rental Demand Across Bergen County

The strength of Bergen County’s rental market is evident in how quickly properties lease. Banu notes that investors often secure tenants before a purchase closes, and this is happening across multiple towns and price points.

“The rental market is fantastic here,” Banu says. “Demarest, Cresskill, I mean, throughout Bergen County.”

This strong demand is driven by the same factors that limit home sales: low inventory, strong interest from Manhattan professionals, and desirable school districts. Many renters are priced out of buying or prefer the flexibility of renting, so they compete for the limited number of available units. This competition is driving up rents and keeping vacancy rates low.

Banu cites a recent example in Garfield, where several qualified renters expressed interest before the deal closed. This level of demand is now common in Bergen County.

“I’m looking at Garfield right now, and we haven’t even closed on the place,” Banu says. “We have multiple people looking to rent it.”

For investors, this means rental properties in Bergen County offer both immediate cash flow and long-term appreciation. The housing shortage, combined with persistent demand, makes buy-and-hold strategies especially attractive. Investors who focus on the right towns and hold their properties are well-positioned for both rental income and capital gains.

What This Means for Investors

The investment opportunity in Bergen County is clear, but it requires discipline and a targeted approach. Investors should prioritize two- to four-family properties in commuter rail towns, avoid office buildings and short-term rentals, and plan for long-term ownership. This strategy may not be flashy, but it is grounded in the fundamentals of supply, demand, and tenant needs.

National investment trends often overlook the realities of specific markets. While office conversions or Airbnb strategies may work elsewhere, they are not viable in Bergen County. The best results come from small, practical multi-family properties that offer stable cash flow and long-term appreciation. Investors who understand these local dynamics and deploy capital accordingly are best positioned to benefit from the ongoing scarcity and strong demand shaping northern New Jersey’s residential market.