Housing in New Jersey The goal of smart growth is to create greater housing choice and more affordable communities, because housing is a critical part of the way our communities grow. Not only does it constitute a significant share of new construction and development, but it is also a key determinant of household commuting patterns, accessibility to transportation options, access to services and education, and consumption of energy and other natural resources. The improved development of housing, therefore, is an integral component in any smart growth strategy. By using smart growth approaches to create a wider range of housing choices, communities can provide housing for all income levels of society, mitigate the economic and environmental costs of auto-dependent development, use their infrastructure resources more efficiently, and generate support for transit, commercial centers, and other services. If you want to live in New Jersey, your housing choices are probably limited. New Jersey has an acute shortage of housing that's affordable for moderate-income and low-income workers. New Jersey is the most expensive state in the nation to rent a two-bedroom apartment and the fourth most expensive state in which to buy a home. It's no wonder that almost a third of New Jersey households must spend 30 percent or more of their income on housing. Furthermore, the new housing being built in our state is predominantly suburban, single-family homes -- some 83 percent of all permits issued. This leaves out moderate and low-income families, people without children, single people, the elderly, and anybody else who simply would prefer to live in some other type of housing. Our property tax system is largely to blame for this market interference, because it encourages higher-tax/lower-need/more expensive single-family homes on larger lots, with their associated traffic and land consumption problems, and discourages multi-family housing, which better meets the needs of the state's changing demographic mix. Smart growth can contribute to improving the quality, supply, and distribution of housing which is affordable to all. Read this section to learn about housing in New Jersey, and how smart growth can help solve our state's housing problems. Affordable Housing Affordable housing is an important component of an equitable society. Smart growth can contribute to improving the quality, supply, and distribution of housing which is affordable to all. Housing Design & Location The way housing is designed and where housing is placed are two very important pieces of the smart growth puzzle.