The U.S. apartment market remains highly competitive despite record new construction in 2024, according to RentCafe data. Only 8% of major markets showed signs of easing compared with the same time last year, as there still aren’t enough rentals to go around, said the company.
Across the country, nine renters are competing for each vacant apartment, an uptick from last year. Rentals are remaining on the market for an average of 46 days, the same as in 2024. Tight supply has pushed lease renewal rates to 63.8%, up from 62.4% last year, which helped occupancy remain steady at 93.3%.
Miami retained its spot atop RentCafe’s list of hottest apartment markets in the United States, bolstered by Florida’s renewed appeal after a long period of cooling driven by retirees seeking warmer weather and younger people attracted to job opportunities, affordability and lack of income taxes. Both California and Florida have become significantly more difficult for renters compared with the same period last year.
Close to Miami’s heels are Chicago’s suburbs, where renters are attracted to a diverse economy and relatively affordable cost of living compared with major coastal cities. Chicago is emblematic of many Midwest markets, where a mix of job opportunities and affordability is strengthening apartment demand.
Also ranking among the 10 hottest rental markets were Broward County, Florida; Eastern Los Angeles County, California; suburban Philadelphia; Manhattan; the city of Chicago; Lansing/Ann Arbor, Michigan; Bridgeport/New Haven, Connecticut; and Brooklyn.
The fastest-growing large rental hub in RentCafe’s latest ranking was Houston, as new supply dropped significantly across Texas, coupled with an increase in lease renewals. Meanwhile, the hottest small rental market in the United States was Fayetteville, Arkansas, which is undersupplied and had more than three-quarters of renters renew their leases.
RentCafe’s data indicates the average renter stays in their apartment for 29 months. In the Northeast, that goes up to 39 months; and in Brooklyn, renters stay for an average of 53 months. The West remained the least competitive region, although its performance has shown signs of improving, said RentCafe.
The apartment rental market in Los Angeles has become noticeably tighter in the wake of wildfires there earlier this year, according to the report. Lease renewals jumped 5.1% over the past year to reach 57.8%. Only 4% of units are available, and supply grew just 0.3% after a period of no new growth. As a result, up to 18 renters are competing for each available unit, and vacancies fill in 42 days on average, said RentCafe.
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