Latest news with #RentalCompetitiveIndex
Yahoo
25-06-2025
- Business
- Yahoo
Renter competition tightens nationwide for apartments
This story was originally published on Multifamily Dive. To receive daily news and insights, subscribe to our free daily Multifamily Dive newsletter. The nation's apartment market is only getting more competitive for renters, despite a peak in new deliveries last year, according to RentCafe's annual analysis. RentCafe rates the country's Rental Competitive Index at 74.6 out of a possible 100, up from 73.4 in early 2024. New apartment deliveries have begun to pull back, with new supply rising only slightly to 0.72% of the total stock — not enough to meet demand, according to the report. Each existing vacant unit now has an average of nine renters competing for it, up from eight in 2024. At the same time, lease renewals are rising, meaning more renters have decided to stay put in the last year than the previous year. The lease renewal rate stands at 63.8%, up from 62.4%, and the average time a household spends in a unit has risen to 29 months. RentCafe bases its RCI on five data points — new apartment construction in the past year, number of prospective renters, lease renewal rates, occupancy and days until a vacant apartment is leased. Miami not only remains the nation's hottest rental market, but has become even more competitive in the past year, moving up 2.6 points to 96.7 on the RCI — 22 points above the national average and more than ten points ahead of any other market. Market Competitiveness score Occupancy rate Prospective renters per vacant unit Share of new housing units in stock 96.7 96.6% 21 0.40% 85.1 95.6% 14 0.14% 85.0 95.2% 14 0.82% 83.9 96.1% 18 0.30% 81.7 94.9% 11 0.10% 81.7 95.9% 11 0.15% 81.1 95.0% 13 0.23% 80.6 95.3% 9 0.32% 80.6 94.7% 12 0.05% 80.6 96.7% 12 0.61% SOURCE: RentCafe Vacant apartments in Miami fill within an average of 36 days — 10 days shorter than the national average — and draw 21 competing renters on average. Lease renewals have risen to 74.7% from 73.4% in early 2024, while occupancy has grown only slightly, up from 96.5% to 96.6%. Suburban Chicago comes in a distant second for competitiveness, up from the No. 4 spot last year — even though its RCI has fallen slightly from 85.3 to 85.1. Overall, Midwest markets maintain a strong presence in the top 20, driven by a mix of strong job opportunities and affordability, according to the report. The wildfires in Los Angeles earlier this year had a significant tightening effect on its rental market, as many residents were displaced and in need of new housing, according to the report. Lease renewals rose 5.1% over the past year, up to 58%, while the number of competing renters per unit has risen from 14 to 18. New deliveries in the area were already limited, with only 0.3% new supply growth in the past year. Demand remains high in Silicon Valley as tech workers return to the office, according to the report. Occupancy has risen to 95.3% in areas like Mountain View, Palo Alto and Cupertino, California, and each unit attracts an average of 12 prospective renters and leases in 39 days. Out of the top 20 most competitive markets in the nation, 15 have a lower share of new apartments in their total stock than the national average. However, only one — Pittsburgh, at No. 20 — had no new deliveries at all in the past year. Recommended Reading Survey says operators should focus on community over frills
Yahoo
24-03-2025
- Business
- Yahoo
North Jersey's rental market is among the hottest in the nation. How it compares to 2024
Despite experiencing an end-of-year lull, North Jersey has reclaimed its spot as one of the nation's most competitive rental markets at the start of 2025. The region ranked third in RentCafe's early 2025 Hottest Rental Markets report, heating back up after being named the sixth-most competitive market at the end of 2024. North Jersey — consisting of Bergen, Passaic, Morris, Essex, Sussex, Hudson and Union counties in the report — ranks behind No. 1 Miami and No. 2 Suburban Chicago. Compared to its previous rankings, RentCafe added new metrics to determine the hotness for rental markets across the nation. These new metrics include the average length of stay for renters, new lease terms and renewal lengths. With a Rental Competitive Index Score of 85.7, North Jersey is again the most competitive rental market in the Northeast. It is succeeded by No. 2 Philadelphia and No. 3 Bridgeport-New Haven, which ranked fifth and ninth overall, respectively, in the report. The region has about nine prospective renters for every vacant apartment unit, which has remained the same from 2024, according to the report. And available apartments have typically remained vacant for about 41 days at the start of 2025, up from 38 days in 2024. Additionally, about 95.2% of the region's apartments are currently occupied — compared to 95.8% in 2024 — with a lease renewal rate of 71.4%, down from 73.1% in 2024, the report found. With this, renters in North Jersey typically have longer stays, longer lease terms and higher renewal terms than what is seen on the national level. The report said that the average North Jersey renter stays in their unit for about 33 months, or nearly three years, compared to the national average of 28 months. They also sign leases for an average of 14 months, rather than the national average of 12.5 months, and renew their leases for 13 months instead of the standard 12-month term. RentCafe credited the continued competitiveness in North Jersey's rental market to the fact that it offers a better work-life balance for people moving from New York City, as well as communities with smaller and more efficient living spaces. "The area continues to attract professionals looking to stay close to jobs in Manhattan and Philadelphia, while high-income renters from New York City often relocate here for a better work/life balance without losing access to the city," the report states. "At the same time, Millennials and Gen Z renters are drawn to smaller, more efficient living spaces in places like Jersey City, Newark, Hoboken, Union City, Edgewater and Morristown." Other hot housing markets in the Northeast at the start of 2024, according to RentCafe, include Lehigh Valley, Pennsylvania; Harrisburg, Pennsylvania; Rochester, New York; Worchester-Springfield, Massachusetts; and Providence, Rhode Island. Maddie McGay is the real estate reporter for and The Record, covering all things worth celebrating about living in North Jersey. Find her on Instagram @maddiemcgay, on X @maddiemcgayy, and sign up for her North Jersey Living newsletter. Do you have a tip, trend or terrific house she should know about? Email her at MMcGay@ This article originally appeared on North Jersey's rental market named among the hottest in the nation
