The hottest rental markets had over 20 tenants competing for an apartment in 2022

Rent Café published its Year-end report 2022which examines the most competitive rental markets this year.

Although apartment construction is at an all-time high, finding a rental in 2022 has been difficult. Nationally, the average renter had to compete with 14 other apartment seekers for a rental, which didn’t stay listed for more than a month.

With more than two-thirds of tenants renewing their leases and an average occupancy rate of more than 95%, the rental market was competitive this year despite the fall slowdown. And with demand growing in almost every metro area, renters had the hardest time finding an apartment in Miami, Orlando, Grand Rapids and North Jersey.

Here are some highlights from the report:

Miami-Dade, Florida was the hottest rental market in 2022, due to a high 97.5% occupancy rate and a staggering 75% of renters deciding to stay put and renew their lease. As a result, despite the region’s apartment supply growing by 2.8% in 2022 compared to the previous year, a record number of 32 tenants competed for a vacant apartment, which was snatched up in 25 days, on average.

In fact, Florida was this year’s rental hotspot: five of the country’s hottest places to rent were in the Sunshine State, with Orlando being the third most competitive rental market nationally, followed by the South. -West Florida, Broward County and Tampa.

The search for apartments has intensified in the Midwest, especially in slow-building areas like Grand Rapids, Milwaukee, Omaha and Lansing – Ann Arbor, all of which continue to attract young professionals from more expensive metros across the country.

Despite a modest 0.8% increase in supply, tenants of Grand Rapids faced the second toughest market this year: as many as 18 people competed for a vacant apartment, which was filled in 28 days. Meanwhile, Grand Rapids’ occupancy rate has reached nearly 97%, prompting about 70% of renters to renew their leases instead of looking for a new location.

The North East continued to attract remote workers looking for extra space and better deals – so much so that seven North East markets were among the hottest 20. Harrisburg, where virtually no new apartments were added this year, emerged as the regional leader, ranking 4th nationally for competitiveness. This was primarily due to its lower cost of living than most major northeast metropolitan areas, as well as its family community and proximity to the great outdoors. Another advantage of living in Harrisburg is its relative proximity to Philadelphia, Pittsburgh, and Baltimore.

Central Jersey was twice as competitive as Manhattan this year. The region had the highest lease renewal rate in the country (85%) and an average occupancy rate close to 97% (while having an increase in apartment supply of only 0.9%). That said, finding an apartment to rent was quite difficult for most locals, with an average of 15 tenants vying for an apartment. Renters in North Jersey were in a similar situation, despite a 2.1% increase in apartments.

On the West Coast, low-supply Orange County in California was the hottest rental location, followed by San Diego, both of which continued to attract tenants from Los Angeles and San Francisco. In fact, Orange County and San Diego were the only California markets to make our top 20 this year.

Orange County was the 8th most competitive rental market nationally. The small increase in supply (0.6%) failed to satisfy apartment seekers, mainly e-commerce workers, looking for rentals in a city where less than 3% of apartments were vacant. Similarly, an average of 22 tenants competed for a vacant apartment in San Diego, which ranked 13th nationally.

Although larger metros tend to offer more jobs and higher wages, that doesn’t mean smaller areas can’t be as competitive on their own — and Fayetteville, Arkansas is the perfect example. With a record 98.3% occupancy rate and more than three-quarters of apartment dwellers choosing to stay put this year, renters have had a hard time finding an apartment to rent in Fayetteville. On average, it took just under two weeks for a vacant unit in Fayetteville to become occupied this year, with an impressive 28 potential tenants competing for an apartment.

Here, large employers like the University of Arkansas and Walmart, headquartered near Bentonville, provide plenty of opportunities for locals and newcomers alike. Plus, the city is nestled in the Ozark Mountains, making it a great place to live for nature lovers.

The second most competitive small market was Lehigh Valley, Pennsylvania, where many remote workers fleeing tighter restrictions in Philadelphia, New York and New Jersey during the pandemic found larger apartments that better suited their budget. . At the same time, soaring home prices have forced many potential buyers to keep renting until they can resume their home search. As a result, more than 80% of people living in rental apartments in Lehigh Valley chose to stay put this year.

Likewise, the growing trend of working from home has led thousands of residents in Boston, Manhattan and Washington, D.C., to reconsider their housing options over the past two years. Many of them chose to relocate to quiet Portland, Maine in search of a slower pace of life within reach of breathtaking scenery. This caused the average rental in Portland to fill after 26 days, with a record 68 potential tenants competing for each vacant apartment this year. Of course, in all honesty, Bostonians have always had a soft spot for this charming corner of New England.

Other highly competitive small markets in 2022 include Lafayette, Indiana, Asheville, North Carolina, Madison, Wisconsin, Tulsa, Oklahoma, Providence, Rhode Island, Knoxville, Tennessee, North Central Florida, Little Rock, Arkansas, Columbus, Georgia , Fort Wayne, Indiana, Chattanooga, Tennessee, Wichita, Kansas, Albany, New York, South Bend, Indiana, Fayetteville, North Carolina and Albuquerque, New Mexico.

Leave a Comment