Just How Competitive is Your Apartment Market?
(12/18/23) Do you think your apartment market is challenging? Be happy you aren’t looking for a new rental in Miami.
In its 2023 Year-End Report, apartment-search website RentCafe.com analyzed apartment data across 139 rental markets in the U.S. The firm looked at market-rate multifamily properties containing at least 50 units and compared occupancy rates, the number of renters applying for each available unit, vacancy days, the percentage of renewed leases and the share of new apartments. Fully affordable properties were not included.
The results: While most rental markets in the country showed signs of softening this year, there were some exceptions, including Miami-Dade County, which was the nation’s hottest rental market in 2023. With a thriving tech scene that’s attracting entrepreneurs from around the world and a business-friendly climate – not to mention no state income tax – the Miami rental market experienced strong demand for rentals from both locals and newcomers.
In fact, according to the RentCafe.com report, thanks to its high apartment occupancy and lease-renewal rates -- even during a market building boom -- the market was so competitive that 22 prospective renters vied for each vacant apartment in the area.
Other key highlights of the RentCafe.com report:
· Apartment construction surged by 3.7 percent in the Miami market in 2023. Despite that increase, demand still outpaced supply.
· Nearly three-quarters (71.2 percent) of renters in Miami chose to stay in their current apartments rather than move out. That pushed the occupancy rate to 96.9 percent.
· Florida has five highly competitive rental markets in the top 30 nationwide, including Broward County, which ranks seventh.
Rounding out the top five most competitive rental markets in 2023 after Miami-Dade County, Fla., according to RentCafe.com: North Jersey, N.J.; Milwaukee, Wisc.; Grand Rapids, Mich.; and Suburban Chicago, Ill.