You’ll Never Guess What Region Has the Most Competitive Rental Markets
The Midwest and Northeast Top the Charts
Most wouldn’t expect the Rust Belt and Midwest Regions to top the charts of the Nation’s Most Competitive Rental Markets. Decades of population decline and outward migration have left some of these areas desolate. But the emergence of software and tech companies, coupled with the affordable cost of living, has lured millennial and Gen Z renters and aspiring home owners to the middle of the map in droves.
Of The Top 10 Most Competitive Rental Markets in the United States, eight are situated in the Midwest and Northeast.
Here’s the full list:
Miami - Dade, FL
Milwaukee, WI
North Jersey, NJ
Chicago, IL
Grand Rapids, MI
Oklahoma City, OK
Bridgeport - New Haven, CT
Cincinnati, OH
Lansing - Ann Arbor, MI
Orlando, FL
The Miami market has been hot since the height of the pandemic and it hasn’t shown any signs of cooling off. The average apartment unit sits vacant for only 36 days before being re-rented; this is the shortest vacancy period of any other major metro in the nation. Over 95% (96.5%) of all inventory is already occupied, and when a new unit becomes available for lease, there’s typically 14 prospective tenants competing for every 1 apartment.
Milwaukee came in second. Apartment units throughout the city sit vacant for an average of 37 days before being filled by a new resident. Occupancy is nearly just as high as the Miami Metro Area - 95.1%. And for every one apartment, there are nine prospective tenants competing for the same listing.
South of Milwaukee, there are a handful of Midwest Metros that are in high demand. Madison, Chicago, St. Louis, Indianapolis, and Grand Rapids are currently some of the most competitive rental markets in the country. The influx of migrants to the Midwest is partially due to the freedom that’s been extended to remote workers. Since the pandemic, more families have been able to relocate. And the Midwest’s affordable housing stock makes it more attractive than other regions of the map that offer less space for a higher price.
As long as interest rates continue to hover above 7.0%, the rental market as a whole will remain relatively competitive. A small fraction of those relocating are able to afford a home purchase; therefore, leasing has become the only alternative. And while the Midwest and Northeast regions have traditionally been less competitive than the West Coast and Sunbelt, they’ve now become some of the toughest places to secure an apartment.
If you’re considering a home purchase or investment this year, and you’d like professional guidance and assistance throughout the process, our team is more than happy to help.
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