The real estate industry faced severe challenges in 2008 with the financial crisis in America. Many people lost their homes being unable to pay the mortgage payments. Businesses incurred losses as the prices of houses plummeted down. However in 2010 and 2011 the real estate market has been picking up in the region though at a slow pace (Taylor, 8). The states of New York and New Jersey have been lagging behind in the real estate recovery. Slow growth has been predicted for 2011 for Northern and Central Jersey (Benziga, 11). Due to job cuts and the reorganization of financial firms, there has been a lower demand for commercial real estate. These states are lagging behind the other states in terms of economic recovery. Overall the economy has been showing positive signs and the real estate market is bound to improve.