Reevaluating New Jersey’s Rent Control Exemption for New Construction

Kerry Robinson

September 2025

In New Jersey, new construction is exempt from price controls for 30 years, even in municipalities with rent control ordinances. Given the other exemptions available to developers, it is questionable whether this exemption is necessary to spur new construction. This memo examines that question by laying out the history of rent control in New Jersey as well as the history of the new construction exemption, looking at case law involving the exemption as well as arguments for the exemption and critique of those arguments, and proposes alternatives to the exemption as either an abolishment or revision of the exemption. The history shows how the moderate nature of rent control in New Jersey suggests that its effect on new construction is overblown, the legislative intent was more about removing barriers to new construction without considering any balance with the prevention of rent gouging, rent control is relevant towards new construction, and significant revision, if not abolishment, of the exemption would have a beneficial effect for existing affordable housing.

Continue reading the memorandum in its entirety below:

Reevaluating New Jersey’s Rent Control Exemption for New Construction