These Have Been the Most Competitive Rental Market During the Summer Peak

Finding an apartment has gotten much tougher as many homebuyers continue to sit out a purchase of a single-family home and vie for available apartments. 

At the top of the list of 139 markets RentCafe looked at, Florida’s Miami-Dade County took the No. 1 spot of most competitive place to rent during this summer’s peak this year. One reason was its high occupancy rate of 97.1% with 25 renters vying for each vacant unit. The city appeals for its diverse economy and relaxed lifestyle, despite a drop in population for the first time in half a century. Perhaps, the rising costs of living and housing there are pushing some to leave. 

Among the places they may be going is to the Midwest, which now has three of its markets in the top five nationally for this same ranking—Milwaukee, suburban Chicago and Grand Rapids, Mich. Milwaukee moved into the second spot nationally, up from seventh, with 16 renters looking at every vacant unit and apartments empty being filled within one month.

Why the overall popularity of the Heartland? Its most competitive locations offer housing choices in a range of budgets and their overall areas provide an affordable cost of living for a win-win. New employment opportunities are another reason as several major companies expanded or relocated to the Heartland of late including Amazon, Walmart and Ford Motor Co. And many in that group have relocated from California, Florida, Texas and North Carolina, even if it means giving up sunshine and beaches for many months of the year and coping with colder winters and gray skies.

Among the suburban Chicago areas that sizzled more are Joliet, Aurora, Naperville, Elgin and Skokie and as far away as Gary and Hammond, both in Indiana, because they offer more space and less congestion. Grand Rapids took the fifth spot nationally, with its convenient location halfway between Detroit and Chicago. It’s also said to offer lively arts and cultural options, another place to live affordably, good craft beer options and a thriving downtown.

But while Florida and the Midwest may have become more appealing, apartment lookers didn’t ignore the Northeast, with Northern Jersey in third place, Brooklyn, N.Y., in 11th, Central Jersey in 12th and Manhattan in 13th. Last among the top 10 was Pittsburgh.

Changes are also happening that are important to be aware of. Occupancy dipped lower to 94% nationwide, down from 95.3% at the height of last year’s busiest rental time, due to completion of more apartments. Renters have more new options to weigh, and many like the latest whether it means newer appliances and other systems and more of the trendiest amenities. As a result, only 60.5% of apartment dwellers renewed leases at the height of peak rental season, which is below last year’s percentage of 63.6%. It also now takes five days longer than a year ago for vacant apartments to be filled, or in other words 37 days versus 32.

Also on the radar is that half or 54% of the 139 markets looked at are cooling in terms of competitiveness compared to results last year, marketed by number of days vacancies stay empty and decrease in how many renters look at each empty unit.