Is there too much new construction in the Wildwoods, or is the recent building activity simply meeting demand?
Short answer: While some see a surge of new homes and condos as “overbuilding,” data from building permit activity in Cape May County suggests a more nuanced picture. There’s been a modest increase in new permits, but not a runaway boom.

What the Permit Data Actually Shows

• According to the latest data, New Jersey Department of Community Affairs (DCA) reports that Cape May County authorized 71 new housing units by building permits (single and multi family combined). 
• Of those 71 units, 57 were 1 and 2 family homes, and 14 were multi-family units. 
• That level isn’t trivial - it shows active new construction, but it’s also far from a massive wave suggesting uncontrolled development or “overbuilding” beyond need.

In context: statewide permit activity has climbed and dipped over the past few years. After peaking around 2021, permit numbers declined in 2022 and 2023.  That suggests builders statewide - including in the Shore region - are becoming more cautious rather than rushing new inventory.

What This Means for the Wildwoods & Cape May County

For communities like Wildwood, NJ, North Wildwood, NJ, Wildwood Crest, NJ, West Wildwood, NJ, Diamond Beach, NJ and surrounding Cape May County towns, these facts suggest:

• New construction is happening - but at manageable levels. A handful of new single family homes and a smaller number of multifamily units does not signal a building glut.
• Given the seasonal nature of the Shore - where summer tourism and vacation rentals drive much of demand - modest new construction may actually reflect sustained demand rather than speculative overbuilding.
• Local building departments (in Wildwood, North Wildwood, Cape May County, etc.) continue to operate under permit regulations and zoning oversight, which help moderate development and ensure safety and compliance. 

Why Some People Feel Like We’re “Overbuilding”

Even with moderate permit data, there are a few reasons why locals or visitors may feel like development is booming:

• Many new builds are replacing older motels, small cottages, or rundown properties - especially along the Shore. For example, much of the older “doo‑wop” motel era housing in the Wildwoods has been gradually phased out. 
• New construction tends to jump out in dense parcels or beach access zones, where even a single new home or condo can visually alter the streetscape.
• Seasonal influxes and short-term rentals (vacation‑home demand) can make supply feel tight - making every new build more visible and often interpreted as a “surge.”

What’s the Bottom Line — Are Builders Overbuilding?

Based on permit data and county-wide trends:

• There is construction activity, but not an excessive amount.
• The pace of new builds in Cape May County remains modest and does not indicate a building bubble or oversupply - especially compared to inland development trends statewide.
• For buyers, homeowners, or investors in the Shore area, this level of building may help meet demand for vacation homes, rentals, or new construction without destabilizing property values with a glut.

What to Watch — And What to Ask

If you’re keeping an eye on growth or advising clients (or shopping for a home at the Shore), these are useful questions to ask:

• Is a new structure replacing an older property - or is it adding net new housing stock?
• Has the municipality issued a permit according to zoning, environmental, and coastal zone regulations (especially relevant in Shore areas)?
• What is the balance between full‑time homes and vacation/rental‑type homes - overbuilding worries tend to arise when many new units end up as short‑term rentals instead of primary residences.
• How are local infrastructure, utilities, and municipal services adapting - are roads, plumbing, sewer, and water systems being upgraded in tandem with new builds?

As your local expert, The Jessica Lees Team - serving the Wildwoods and Cape May County - we track municipal trends, and building activity across the Lower Jersey Shore so you don’t have to sort through hearsay. If you want a breakdown of new builds in your neighborhood, or help assessing whether a new construction purchase makes sense, we’re here to provide clarity and guidance.

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