Many of America’s waterfront cities were once thriving industrial hubs, and Camden, New Jersey is no exception. The city, which has been the seat of the Camden County government since its establishment, remains one of New Jersey’s prized locations for investment properties partly because of its waterfront and partly due to ease of access to the surrounding areas. Camden is directly across from Philadelphia, Pennsylvania along the Delaware River. It is home to educational campuses, health institutions and corporate headquarters of manufacturing companies that have kept the local economy humming along.
Why Camden Thrives
Camden has earned its reputation as a city of grit, hard work, and determination. The flight of manufacturing companies and the suburbanization of the city has created many investment opportunities in Camden especially with the spate of redevelopment and urban renewal projects. It helps that the city is steeped in history and that locals, some of whom are prominent citizens with access to the financial resources needed to effect change, take pride in Camden.
- The population of Camden is diverse ethnically and culturally. This means that the city plays host to varying traditions, festivals and practices, ensuring a rich socio-cultural calendar.
- The median age of the population is 29, pointing to a younger, employable demographic to support the manpower needs of regional and local employers.
- The age group between 21 and 72 accounts for close to 63 percent of the total population, supporting the point cited above.
- The median home price is $84,600, suggesting that this must be one of New Jersey’s most affordable cities when it comes to housing trends.1
- Camden has a Walk Score of 65/100, which bodes well for those with health and wellness concerns.
Overview of the Economic Base and Points of Interest
The Camden Waterfront is a prime commercial site. This area is home to the following attractions:
- The USS New Jersey is a decommissioned battleship, which is now a maritime museum that is open to the public.
- BB&T Pavilion is an outdoor amphitheater for special events. The complex also includes an indoor theater.
- Adventure Aquarium is an educational entertainment center that houses at least 8,000 creatures with 2 million gallons of total tank space.
Here are other points of interest that also serve as economic anchors and major employers in the city of Camden.
- Rutgers University–Camden is one of three regional campuses of Rutgers University, a public research university based in New Jersey. About 6,600 people attend this university for their undergraduate, graduate and post-graduate studies.
- Cooper Medical School of Rowan University is a public medical school that was created through the collaboration of Rowan University and Cooper University Hospital.
- Cooper University Hospital is a biomedical research facility and a teaching hospital that handles close to 80,000 emergency room visits with about 38,000 admissions annually.
- Our Lady of Lourdes Medical Center is a teaching hospital with a 410-bed capacity.
These educational and health facilities employ about 45 percent of the total population. Corporations with headquarters in Camden include Campbell Soup Company, the Delaware River Port Authority, L3 Technologies, and the Susquehanna Bank.
Economic and Housing Trends
The median household income for Camden is $27,027 with the average unemployment rate hovering at 10 percent.2 The trade, transportation and utilities sector are the largest employers with payrolls of 126,000 while the health and education sectors employ about 100,000.3
About 60 percent of Camden houses are owner-occupied, and the rest are rentals. The median rental rate is close to $900, which is roughly $80 per square foot. However, Camden real estate experts state that rents can be much higher in the desirable neighborhoods such as those close to Rutgers University and the central downtown waterfront. The yield on investments in these neighborhoods should be even better, assuming that you can find the right residential real estate to add to your portfolio.4
Investment opportunities in Camden are plentiful given the affordable price levels and the availability of properties. It is estimated that the housing vacancy rate for this city is about 16 percent.5 That said, investors looking for residential investment properties can count on Camden to deliver. The cash on cash return for property worth about $102,000 and a monthly rental of $1,200 is 5.25 percent, which is impressive compared to other real estate investment opportunities. The median rent for the state is about $1,450.6 Camden’s cash-on-cash rate is higher when the investment property is located in more desirable neighborhoods, including the following:
- Rutgers University-Camden near South 3rd St.
- Cooper Health System Center for Allied Health by Market St.
- Vine St. by North 3rd St.
- Linden St by North 9th St.
- Cramer Hill
- Ferry Ave. by South 8th St.
- City Center
- Whitman Park
- Pavonia
- East Camden
Residential projects near the Ben Franklin Bridge are highly desirable not only for the waterfront features but also because of ease of access from Philadelphia where home prices and rents are higher as is the cost of living. Camden will continue to grow as formerly blighted areas are targeted for redevelopment.7 Investment opportunities in Camden will be enhanced as projects like the Cooper’s Poynt Waterfront Park are completed. Rutgers University-Camden is planning to expand its campus even as the Camden waterfront complex is nearing completion. This development project will have unobstructed views of Central City Philly and will include American Water Works as an anchor tenant, a hotel, restaurants, office spaces and residential units.
It is an exciting time to be involved in Camden investment properties. There is a cost-efficient way to be a Camden property investor if this area was not previously on your radar. Auction.com is a real estate platform that deals exclusively with sales of bank-owned and foreclosure residential properties. For the Camden area, browse listings of currently available properties. Listings are updated on a regular schedule, so bookmark this page and review often.
Sources:
1 Camden, New Jersey
https://livability.com/nj/camden
2, 4, 5 Camden Real Estate Statistics & Foreclosure Trends Summary
RealtyTrac Real Estate – https://www.realtytrac.com/statsandtrends/nj/camden-county/camden/central-waterfront%20Camden,%20NJ
3 Camden, Nj Economy At a Glance
https://www.bls.gov/eag/eag.nj_camden_md.htm
6 Invest in These Cities For High Cash on Cash Return with Long Term Rentals | Mashvisor
https://www.mashvisor.com/blog/cities-high-cash-on-cash-return-long-term-rentals/
7 Private Companies Invest in Revitalization Of Camden | Video
https://www.njtvonline.org/news/video/private-companies-invest-revitalization-camden/
