Hot Rental Markets Abound: Chicago, Miami, Silicon Valley Remain Top Dogs

June 19, 2024 Kyle G. Horst

A new survey of 137 top rental markets of large-scale properties with at least 50 units found that at least two-thirds of renters are choosing to stay put and re-sign their leases. 

Overall, the survey found that Miami remained top-dog among rental markets as the most competitive market in the country and further strengthened Florida’s overall appeal among apartment dwellers. 

Miami was followed by the greater Chicago area as the second most desirable and competitive rental market influenced by something that RentCafe—the originator of the report—called “hipsturbia,” a portmanteau of the subculture segment called “hipsters” and the a synonym for metropolis “suburbia.” 

This trend, which is not exactly new, has only reinforced the appeal of suburban living in the Midwest, which is known for its affordability and appealing amenities. Nevertheless, Florida remains a hotbed for apartment hunters. 

Also, according to RentCafe’s data, a resurgent and resilient tech sector—somewhat due to the advent of artificial intelligence—has pushed the Silicon Valley in the top-10 most competitive rental markets in the country at ranking number six. 

But, as the busy summer moving season begins, finding a rental becomes a tedious task due to affordability and lack of inventory. 

But, as the moving season ramps up demand, where else can renters look to secure apartments that fit their needs? 

More renters choose to renew their leases at the start of the moving season 

Overall, the U.S. rental market is experiencing slightly less strain at the start of this moving season compared to one year prior, as it’s still feeling the effects of the influx of new apartments that have been introduced in recent years. Notably, the supply of apartments increased by 0.61% since January, which is in line with one year prior. Also, it’s worth noting that around 29% of the 137 markets analyzed are showing signs of softening, often with longer vacancy periods and more lease renewals. 

More precisely, 62.4% of apartment dwellers chose to stay put at the start of the moving frenzy—most likely because they’re still unable to make the switch to homeownership. Looking back one year ago, fewer renters decided to sign lease renewals (59.7%) because they had fewer options to choose from at that time. 

This marked increase in the lease renewal rate is primarily due to more and more renters getting better deals and incentives when they renew. They’re also signing longer leases, which helps property managers keep their buildings full despite so many new apartments opening in the last two years. 

Click here for the lengthy study in its entirety, including a full ranking of the most competitive rental markets across the country. 

The post Hot Rental Markets Abound: Chicago, Miami, Silicon Valley Remain Top Dogs first appeared on The MortgagePoint.

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