While the Midwest was the nation’s most competitive region for apartment hunters this year, Miami was ranked as the most competitive metropolitan area rental market in the United States.
Miami’s Rent Competitive Index (RCI) earned the top score of 93.1, exceeding the national average by 17.4 points. Suburban Chicago was a close second with an RCI of 88.4, followed by northern New Jersey, Lansing-Ann Arbor, Michigan, and suburban Philadelphia—all with scores above 85.
In preparing this report, RentCafe researched the top 139 largest markets in the nation. It focused on metrics including the percentage of apartments currently occupied, the number of days apartments were vacant, the number of potential renters competing for an apartment, and the percentage of renters who renewed their leases.
Doug Ressler, manager of business intelligence for Yardi Matrix, a sister division of RentCafe, told The Epoch Times that historically, Miami has been a popular destination because of the weather and vacation-like atmosphere.
“The fact that Miami also has no income tax is another reason why it continues to attract businesses and residents,” he said.
According to RentCafe’s report, vacant apartments in Miami are being scooped up faster than in any other U.S. metro area, within just 36 days and an average of 14 renters competing for each available unit. While Miami’s apartment supply increased by almost 1.5 percent over the past few months, some 96.3 percent of apartments are currently rented.
Ines Hegedus-Garcia, a managing partner and branch leader at Avanti Way Realty in North Miami Beach, told The Epoch Times that the average monthly rent can range from $3,500 to $4,000, depending on the neighborhood.
“I’ve heard complaints from tenants about rising rents, but it’s definitely more difficult to get a rental now,” she said.
“Plus, Miami’s rental demand is not seasonal. It’s powered now by more capital and jobs coming into the area, and the fact that Miami is a global destination.”
Hegedus-Garcia noted that many clients of the 150 real estate agents at her brokerage prefer to rent an apartment first before committing to purchase a property.
“Especially if they are new to the area, they want to take time to get to know Miami and the surrounding region first before deciding on a place to settle down,” she said.
Miami’s renters are a diverse group, ranging from young professionals to retirees from across the United States and around the world. One of the most popular neighborhoods is Brickell, Miami’s financial district.
“It’s very walkable with tons of restaurants, clubs, art, culture, and parks,” Hegedus-Garcia said. “And yes, it’s also one of the more expensive areas to live.”
Those who do find a rental they like typically stay for at least two years, and most potential renters find properties through real estate agents.
“There’s a lot of internet scams out there, so people will typically use an agent to help them,” she said.
Practically all of the newer buildings offer amenities such as a pool, gym, community center, and sometimes tennis or pickleball courts. Some rental communities even offer marinas with kayak or paddleboat facilities.
“I think Miami is going to continue to rank high for rental competitiveness,” Hegedus-Garcia said. “It’s a lot more than just sunshine here.”
When comparing the country’s regions, the Midwest had the highest ranking for rent competitiveness nationwide, with an RCI of 79.5. Affordability is listed as one of the main reasons, with areas such as Detroit and Grand Rapids, Michigan; Cincinnati; Milwaukee; and Kansas City, Missouri, ranking in the top 20 rental markets.
RentCafe listed the average rent for a one-bedroom apartment at $1,405 in Cincinnati and $1,276 in Kansas City.
Suburban Chicago is also credited with offering a more affordable option than downtown Chicago, where people are often priced out because of escalating rents.
“Chicago has been experiencing a lot of adaptive reuse of commercial conversions to residential buildings,” Ressler said.
Renters in Northeast Stay in Apartments Longer
Nationally, an average of seven renters are competing for a vacant apartment, and rentals spend an average of 43 days on the market. Some 63.1 percent of renters were found to have renewed their leases, and those in the Northeast tend to stay in their apartments longer—averaging a little more than three years. As a result, almost 95 percent of apartments there remain occupied.Ressler said that cities such as New York City, Boston, and Philadelphia are highly dense and less likely to see significant new construction.
“That, of course, makes it harder to find an apartment, so people living in these areas do remain in their units for a longer period of time,” he said.
“Plus, the cost of moving can often run anywhere from $4,500 to $10,000 based on how far away they want to move. People usually don’t want to do that unless they’re stepping up to a better job opportunity.”
On a national level, U.S. renters tend to live in the same apartment for 2.3 years.
Ressler said Americans who might otherwise consider buying a home after renting for a few years may be put off by rising home prices and elevated mortgage interest rates.
“Considering everything today, it’s still about $1,000 a month cheaper to rent than [to] own a home,” he said. “Unless wage growth is able to keep up with inflation, many renters are going to be left out of the home buying market.”
The rule of thumb, noted Ressler, is to spend a maximum of 30 percent of gross income on housing costs.
“Depending upon the market, renters may be spending more or less than that amount, but still have difficulty saving for a down payment on a home,” he said.
Based on this formula, many millennials and Gen Z renters are flocking to more affordable locations such as Jersey City, Newark, Hoboken, Union City, Edgewater, and Morristown—all located in North Jersey, the nation’s third most competitive rental area, with an RCI score of 85.7. According to RentCafe, average rentals in Newark are going for $1,720, and for $2,125 in Union City.
Across the Hudson River, Manhattan has also recently seen a surge in rentals, becoming the second-fastest rising market for rental competitiveness, with an RCI score of 77.3, and ranking 26th nationwide. The Californian metropolitan area of Inland Empire took first place, with an RCI score of 75.5. And even with its reputation for offering some of the highest-priced apartments in America, Manhattan’s demand for rental units remains high, at 66 percent.
Michael Shapot, an associate broker at Keller Williams in New York City, told The Epoch Times that Manhattan’s rental market is booming, despite a median rent of $4,500 for apartments ranging from studios to two-bedroom units.
“That has been the highest ever, representing a 6.4 percent increase over last year,” he said. “People who would otherwise be buying may be uncertain about the stock market and the economy, and when that happens, they don’t make big purchases.”
Shapot’s rental clients include professionals who moved out of the city during the COVID-19 pandemic and are now moving back, in addition to bankers, attorneys, and high-end financial professionals.
“Manhattan is not a cheap place to live, and a lot of these people can pay those higher prices to be closer to their offices, the theater, restaurants, and sports activities. It’s a lifestyle decision,” he said.
Empty nesters also make up a fair share of the Big Apple’s renters, as they want to be closer to their children and doctors and no longer need a large suburban home.
“We’re definitely not seeing a slowdown in the rental market and typically spring and summer are the busiest times of the year,” Shapot said.
Occasionally, there are bidding wars for Manhattan rentals, but Shapot indicated that most landlords will work with one potential tenant at a time, checking financing and references.
“I think this renting frenzy may continue until next year, when there is more stability with interest rates and the economy,” he said.
When it comes to small-market rentals, Fayetteville, Arkansas, leads the nation with an RCI score of 91.7. The northwest area of the state has been booming lately with new major employers moving into the area, creating jobs as well as opportunities for more apartments.
RentCafe’s report indicates that demand there is so high that apartments are snatched up in just 22 days—the fastest turnaround in the nation. The average rent for a one-bedroom unit in Fayetteville is $1,431, and more than 75 percent of renters there also tend to renew their leases each year.
