Miami Tops List of Hottest Rental Markets

Miami was the most competitive rental market this year, according to a new report from RentCafe. The South Florida enclave was followed by Grand Rapids, Orlando, Harrisburg and North Jersey.

RentCafe analyzed the 135 largest markets in the U.S. where data was available, examining metrics including the number of days apartments were vacant, what percentage of rentals were occupied, the number of prospective renters competing for an apartment, what percentage of renters renewed their leases, and the share of apartments completed this year. The firm then calculated a Rental Competitivity Index (RCI), to measure how competitive the rental market was this year.

Miami topped the list due to record-high occupancy and high lease renewal rates “a combination of factors — including the lack of state income tax, business-friendly climate and booming tech scene — attracted droves of Millennials and even Gen Zers looking to work and live in the Sunshine State,” the report notes. On average, a record 32 renters competed for a vacant apartment in Miami, and rental units were filled in 25 days.

Grand Rapids followed behind at #2 with an RCI of 112.6, thanks in part to an influx of rentsers from more expensive cities from throughout the country, including Detroit, Chicago and Phoenix. The city’s occupancy rate hit a high of 96.9% this year and 70% of renters chose to renew their leases.

And in Orlando, the #3 spot, apartment supply grew by 2.2% this year while 72.5% of apartment dwellers chose to stay put, resulting in 96.8% occupancy.

The hottest small rental markets were Fayetteville, Ark., Lehigh Valley, Pa., and Lafayette, Ind.