Yes, you are right. I own several rental houses myself (not in New Jersey). Rents are increasing in my area too. If I have a good renter, I try not to increase his/her rent or, if I do, I only do so gradually, even if this means getting below-market rates. But, when someone moves out, I charge market rates to the next renter. This makes sense ethically (I don't want to price anyone out of his/her house if I can avoid it) and business-wise (a below-market renter who pays his/her rent every month is better than taking a risk on a new renter that might not be a reliable payer). The problem is, many rental properties are owned by large corporations (hedge funds, etc.), that prioritize ROI over all else.