Kathryn Brenzel | NJ Advance Media for NJ.com

JERSEY CITY--People increasingly want to live in Jersey City--a phenomenon that is both exciting and problematic, according to transit experts.

As populations are largely drawn to the so-called "Gold Coast" --considered a roughly 19-mile stretch of municipalities in Hudson and Bergen counties along the Hudson River-- for its proximity to New York, mass transit will likely struggle to keep up with ridership, NJ Transit and Port Authority experts said at a real estate conference on Thursday. The trend is a familiar narrative: Millennials seem to prefer urban areas, especially along the Gold Coast, where they don't have to rely on their cars to get to and from work. As a result, transit ridership is at a record high, panelists said at the New Jersey Gold Coast & Spring Multifamily Summit.

It isn't yet clear whether younger generations will follow the footsteps of the baby boomers--start a family, buy a minivan and move to the suburbs--or stick around the cities, Alexander Heil, chief economist with the Port Authority's planning and regional development department. But for now, the state's urban areas are continuing to grow, and officials need to look at ways to increase capacity on ferries, trains and buses, he said.

"They just simply don't want to to be in the suburbs," he said. "It's not just an issue of millennials being in love with their iPhones and not wanting to commute. It's also an issue of where the jobs are."

Insufficient funding, however, is a challenge to expanding transit options, said John Leon, senior director of government and community relations at NJ Transit. He cited the depleted state transportation trust fund, which will run out of money in June. NJ Transit is grappling with an $80 million budget gap, and has confirmed that it's considering a fare increase and service cuts.

When asked about fares, Leon said the agency has had to strike a "delicate balance" between maintaining an attractive and viable transit options, while also making sure that it can operate. He listed several ongoing proposals for expanding transit, including AMTRAK Gateway, the extension of the No. 7 subway line to Secaucus and the expansion of the Hudson-Bergen light rail to Bergen County.

Developers at the conference also voiced support for adding more stations along the Hudson-Bergen light rail. Daniel Gans, CEO of Hoboken Brownstone Co., said adding light rail stops would not only provide more travel options, but would also connect other parts of Hudson County with the waterfront.

"Having come here for transportation, I think we need more transportation," he said.

Within Jersey City, these non-waterfront areas have been of particular focus, said Deputy mayor Marcos Vigil. He cited the city's shift in larger tax incentives for projects in other areas of the city, such as Journal Square and Greenville, and the addition of recreation, like the 17-acre park planned for Bergen-Lafayette.

"We're looking at places in the city that had been ignored, that had been neglected in the past," he said. "We're basically building upon those different players who have made the city what it is today."

NJ Advance Media for NJ.com