This Apartment Market is the Most Competitive Nationally

For a brief period, the Northeast’s rental market stole the limelight, outshining other regions as the most competitive apartment market. Specifically, New Jersey took second spot, in large part because several of its cities attract workers for good jobs in tech, finance, health care and education.

But according to RentCafe’s recent survey, which analyzed 137 markets in the U.S., Florida has regained that accolade due to its diverse, resilient economy and status of being the fastest-growing state in the country. 

And why not? The state offers an appealing lifestyle with good weather (forget hurricanes for now), restaurants and recreational activities. All especially appeal to those moving from out of state, for jobs or because they can afford it.

How popular Florida is as a whole shows not just in its overall ranking but in the fact that six of the nation’s top 20 competitive rental hubs are located in Florida. Miami is first, which put it ahead of North Jersey, which moved down to second place this year from a year ago. In third place is Southwest Florida, followed by the state’s Broward County in fourth where Fort Lauderdale, Pompano Beach and Hollywood are all located. In fifth place came Orlando, then Tampa and Palm Beach County.

Just how does all the competition translate in the rental market? There’s little indecisiveness among renters in Florida these days as occupancy rates went up to 97%, lease renewal rates hit 80% and apartments were leased in less than three weeks. In addition, there aren’t enough buildings to meet demand–apartments lease within 33 days or 10 days faster than the national average and there are 24 applicants for each unit, three times the numbers nationally.

Overall, however, the country’s economic clouds have cooled the competitiveness a bit, according to the RentCafé study, which looked at five factors in determining its health of the rental market: number of days apartments were vacant, percentage of apartments occupied, number of renters who applied for the same apartments, percentage of renters who renewed leases and share of new apartments completed. The study calculated a Rental Competitivity Index (RCI) to measure how competition stacked up in different categories in the different markets.

It found that the occupancy rate of 94% was slightly less than it was a year ago when it hit 95.1%. Vacant apartments also are taking longer to fill now, 43 days on average with nine potential renters competing for each unit versus last year when apartments were leased one week faster, and 13 applicants competed for that unit. In addition, fewer than 60% of apartment dwellers signed lease renewals. In addition, 37% of those 137 markets reflect signs of softening in four of the five metrics of competitiveness.

Certain other markets are noteworthy for how rental options stack up. Midwest rentals have become highly desired because of the affordable price tags they come with and their often-generous space. The region’s top competitive market was Omaha, which ranked fifth, due to its urban amenities in suburban settings, good healthcare choices and strong economy. Another Midwestern market that was competitive was suburban Chicago with favored spots favored of Evanston, Naperville, Oak Park, Elmhurst and Arlington Heights.

Out West, Southern California’s Orange County took the spot of most competitive rental spot in the area due to its job prospects with e-commerce and greater affordability than neighbor, Los Angeles. That area is followed by San Diego where there are limited options to choose among.

Some small rental markets have also become competitive such as Harrisburg, Penn., with a low cost of living, availability of services and proximity to bigger cities like Philadelphia, Pittsburgh, Baltimore. Fayetteville, Ark., also figures in this category, attracting students and job seekers who want to work at Walmart.