Here Are the Country’s Hottest Rental Markets

At the peak of this year’s rental season, RentCafe once again analyzed more than 100 cities and compiled a list of the top 20 most competitive rental markets across the U.S. About 30 percent of these markets softened since last year, but demand is still robust overall.

Using Yardi Matrix data, RentCafe looked at five metrics to determine a market’s Rental Competitiveness Index. These were:

• the average number of days an apartment stayed vacant
• the percentage of occupied apartments
• the number of prospective renters competing for a single apartment
• the percentage of renters who renewed their leases
• the number of apartments completed in the first half of the year as a share of the market’s inventory

The national RCI stood at 75.8, up from 73.4 in the first quarter of this year. Renters found a slightly more competitive market, partially due to a small dip in the number of new apartments completed recently—from 0.78 percent at mid-year in 2023, to 0.71 percent this year. However, forecasts suggest this is bound to change, as there is a record number of new apartments set to come online this year.

Suburban Chicago tied with Miami-Dade County

Suburban Chicago rose to the top, with an RCI of 91.3, tied with reigning champion Miami-Dade County for the first spot. It also stood out with a below-average share of new apartments, at only 0.11 percent. Coupled with high demand, this led to more intense competition. There were 16 prospective renters for a single apartment in the market—second only to Miami—while units remained vacant for about 33 days.

Chicago proper landed in the fifth spot, with an RCI of 85.4. The area had the lowest lease renewal rate out of the top 20 most competitive markets, at 58.7 percent. Chicago’s multifamily market improved its performance in the first part of the year, outpacing national metrics.

Nine midwestern markets made the list. According to a recent national multifamily report, cities in the Midwest recorded some of the strongest rent gains in the nation, with demand outstripping supply.

Milwaukee was the third most competitive rental market during this year's peak leasing season, with an RCI of 90.7. Apartments in Milwaukee remained vacant 31 days on average, the lowest out of all markets on the list.

Beside urban and suburban Chicago and Milwaukee, six other midwestern markets made the top 20: Omaha, Neb., Grand Rapids, Mich., Detroit, Lansing – Ann Arbor, Mich., Kansas City, Mo. and Cincinnati. Of these, Omaha and Grand Rapids had the largest shares of new apartments out of the top 20—1.15 and 1.13 percent, respectively.

Northeastern markets sport robust economies

Healthy job growth across New York, Connecticut, New Jersey and Pennsylvania—in the 0.9 to 1.7 percent yearly range, according to the Bureau of Labor Statistics—helped sustain strong demand across large swaths of multifamily markets in the Northeast.

Six northeastern markets made the top 20: Bridgeport – New Haven, Conn., Northern New Jersey, Suburban Philadelphia, Manhattan, Brooklyn and Greater Boston.

Bridgeport – New Haven ranked fourth, with an RCI of 85.8. The East Coast metro provides a less dense alternative to major job hubs in the Boston and New York City areas. Its competitiveness score was strongly influenced by virtually no new construction and an average of 16 potential renters competing for a single apartment.

Two New York City boroughs made the top 20. NYC's strong multifamily performance was evident in rent gains, which stood at 4.8 percent year-over-year through August, the strongest among larger U.S. markets.

Manhattan ranked as the ninth most competitive rental market among the 137 analyzed by RentCafe, and fourth in the Northeast, with an RCI of 82.2. Brooklyn landed in the tenth spot, with an RCI of 82.0. Although showing close scores, different reasons brought Manhattan and Brooklyn their performances. Manhattan saw very few new apartments added to its inventory, while Brooklyn had 14 prospective renters competing for one unit.

Other northeastern markets on the list included Suburban Philadelphia—which includes locations such as Cherry Hill, N.J.; Wilmington, Del.; Norristown, Penn.; Trenton, N.J.; and King of Prussia, Penn.—with an RCI of 82.6. Greater Boston, with an RCI of 79.9, remained a top destination for renters, with high-paying life science jobs and top universities contributing a great deal.

Which are the most competitive small markets?

University towns, along with small cities with high-paying job providers, are among the top destinations for renters in the separate list of the 20 most competitive small markets. Beside work and school, remote work has had a significant impact in the growing popularity of these destinations.

Madison, Wis., clocked in at number one, with an RCI of 90.3. The market’s high demand was evidenced by apartments staying on the market only 23 days on average, with a whopping 17 prospective renters competing for a single unit. Developers, however, seem to be on track to meet demand, with new units representing 1.21 percent of total stock.

Fayetteville, Ark. (RCI 89.7) and Lehigh Valley, Penn. (RCI 87.4) rounded out the top three. Both are established university towns that continue to grow and have, to some degree, always attracted new renters. Both markets had high lease renewal rates, at 72.8 percent and 79.6 percent, respectively.

Smaller markets followed some trends seen in their larger peers, as seven entries on this list are in the Northeast. The Midwest followed, with five markets.