Under New Jersey's fourth round of affordable housing planning, which runs from 2025 to 2035, Ramsey has an obligation of 450 new units. In the same presentation, the borough puts the number that can realistically be built at 26.
The gap between those two figures exists because Ramsey has very little open land left to build on. Most of the coverage this year has been about the zoning itself, including NorthJersey.com's February report on an Island Road overlay that "would accommodate up to 350 residential units." In a town that has nearly run out of open land, zoning sets the upper limit on what could be built. It does not tell you what will be built. For a buyer comparing Ramsey with its neighbors, or a homeowner who wants to downsize without leaving town, the projects that matter are the ones with a builder, an approved plan and paperwork moving through borough boards. Right now that list is short.
The math behind "realistic development potential"
New Jersey gives a town an obligation, but it also lets the town show that it lacks the land to meet it. Ramsey's amended Housing Element presentation dated March 3, 2026 says that "due to lack of available land," the borough qualifies for a Vacant Land Adjustment and a determination of its Realistic Development Potential, or RDP. This isn't a fourth-round quirk. The same thing happened last time.
| Round | Obligation | Realistic Development Potential | Difference |
|---|---|---|---|
| Third Round, 1999–2025 | 736 | 54 | 682 |
| Fourth Round, 2025–2035 | 450 | 26 | 424 |
The borough's document defines the leftover figure, 424 units this round, as "unmet need." It says the borough must "provide opportunities to meet a portion" of it. The word "opportunities" carries most of the weight in that sentence. The 26 realistic units are tied to specific sites. The unmet need gets handled mainly through overlay zones, which permit housing if a property owner decides to pursue it.
An overlay is an option, not a schedule
Ramsey's Mayor and Council approved its new overlays at the March 11, 2026 meeting. NorthJersey.com reported that one covers "an Island Road residential neighborhood" and the other covers property off Franklin Turnpike "from Main Street north to Madison Avenue."
Here is how the borough's presentation describes the two zones:
- R-5E Island Road Overlay: close to the train station and Route 17, a maximum density of 19 dwellings per acre, a minimum lot size of 2.5 acres and a minimum 20% affordable set-aside, for up to 70 affordable units.
- R-5F North Franklin Turnpike Overlay: close to Route 17, a maximum density of 13 dwellings per acre and a minimum 20% set-aside. The presentation's component table credits this zone with 27 affordable units, while its zone slide says "up to 37."
The 2.5-acre minimum lot size in R-5E is what matters most. In a built-out neighborhood, a project has to start with someone putting together enough land to meet that minimum. As of the March presentation, neither zone had a named applicant attached.
Ramsey's earlier overlays show how slowly this can go. The borough's June 2025 adopted plan describes a 7.1-acre site at 575 Island Road, zoned for inclusionary housing at up to 20 dwellings per acre and projected to yield 22 affordable rentals or 29 affordable for-sale homes. That plan also said no dwellings had yet been created there. The March 2026 presentation still lists the R-5B overlay at the Ramsey Lumber site, at 22 to 29 units, as "Zoning in Place." The same 2025 plan projected 19 affordable units from the R-5A garden apartment zone on Franklin Turnpike and noted that no dwellings had yet been created there either.
The one project with a builder attached: 425 Island Road
Of all the sites in Ramsey's plan, 425 Island Road has moved the furthest through the public process. Here is the record so far:
- September 16, 2025: The Planning Board heard the application of Claremont Acquisitions Properties LLC for 425 Island Road, Block 4201, Lots 5 and 6. According to the hearing record, the applicant's attorney said they were working with Lennar Homes as the builder. Traffic testimony described 59 age-restricted townhomes plus 11 inclusionary age-restricted units, 70 homes in total, with both portions restricted to ages 55 and up.
- January 15, 2026: The Shade Tree Commission approved the landscape plan for the townhouse project.
- March 3, 2026: The borough's amended plan presentation listed 425 Island Road as "Site Plan Approved."
- July 20, 2026: Board of Public Works minutes reported that shop drawings for "425 Island Ave" had been submitted and were under review by H2M.
The public record has a wording gap. The March presentation labels the project's affordable component "senior rentals," while the hearing testimony describes townhomes. The borough's records also don't yet show whether construction has begun, a project name or a sales timeline.
For an established Ramsey homeowner thinking about a smaller home, this site matters. It is the one new-construction, age-restricted townhome project in the borough's plan with a national builder named on the record. It is also a single 70-home site, still moving through technical review.
Constantine Drive: the next site in front of the board
The second site to watch is 1 Constantine Drive, a 2.8-acre redevelopment parcel in the Route 17 and train station area. The borough's planning documents anticipate up to 56 homes there, nine of them affordable family rentals. In March 2026 the borough's status for the site was "Zoning in Place."
The Planning Board's October 20, 2026 agenda lists QTR Development Partners, LLC for a continued hearing on site plan, variances and soil movement at Block 3603, Lot 1, 1 Constantine Drive. A continued hearing means the application is still being heard, and the board's minutes will show what happened next. The last item in the plan, two family units at 40 N. Franklin Turnpike, was listed in March as "Settlement Agmt/Proposed."
So between Constantine Drive and Island Road, the borough's plan puts about 126 homes in front of the board. Neither site has finished construction.
What the regional numbers say about attached homes
NJ REALTORS doesn't publish borough-level reports to the public, so the most current public data for Ramsey comes from its September 2026 market report. That report covers a multi-town Bergen and Hudson County area that includes Ramsey, with data current as of October 9, 2026.
| September 2026, regional, vs. September 2025 | Single-family | Townhouse/condo |
|---|---|---|
| Closed sales | Up 3.3% | Down 10.5% |
| Median sale price | $825,000, up 0.6% | $522,500, up 5.1% |
| Inventory | 1,052, up 9.8% | 635, up 13.8% |
Across the region, September 2026 brought fewer townhouse and condo closings, more townhouse and condo listings and a higher townhouse and condo median price. All three describe the wider market area, not Ramsey on its own. They still frame the question for Ramsey. If more of the region's attached-home supply is coming to market, Ramsey's own addition to it depends on a small number of specific parcels. The town's own plan expects only a few dozen realistic units this round, because of land.
Where to look when a listing sits near these sites
Ramsey publishes the documents that show what is possible and what is pending, and they are easy to find:
- The March 3, 2026 amended Housing Element presentation lists every site, its status and the overlay standards.
- The June 2025 adopted Housing Element and Fair Share Plan gives site acreage and the history of each one.
- Planning Board agendas and minutes, such as the September 16, 2025 hearing record, show which applications are active.
Questions that come up
Does an overlay change the zoning on homes inside it? According to NorthJersey.com, the overlays were approved "to allow for potential future affordable housing." How an overlay applies to a particular lot is a question for the borough or a land use attorney.
Is 425 Island Road selling yet? Borough records describe the project and its approvals but don't show sales or leasing information. The latest public step is the July 2026 shop drawing review.
Why is Ramsey's obligation so much higher than what it plans to build? The borough's presentation says Ramsey qualifies for a vacant land adjustment because it lacks available land. That adjustment sets the realistic figure at 26 units and leaves 424 as unmet need.
This post is general information about public planning records, not legal, tax or financial advice. Please confirm how any rule applies to a specific property with the right professional.
If you're weighing a move within Ramsey or comparing it with nearby towns, I track these sites alongside the closed sales they affect. I'm glad to walk you through how a specific home or street fits into the borough's plan. Request a personalized market consultation with Claudia H. Sanchez.
