Latest news with #RentalCompetitivenessIndex
Yahoo
24-03-2025
- Business
- Yahoo
Los Angeles rental market faces tougher competition in 2025
The Greater Los Angeles rental market is facing increased competition in early 2025, according to new research from RentCafe, a nationwide apartment search website. January's wildfires have added uncertainty to the rental market outlook, the extent of which is still unclear, and data shows both eastern and western Los Angeles County have become more challenging for renters compared to early 2024. In eastern Los Angeles County, which includes parts of L.A., Long Beach, Pasadena, Pomona and Downey, 51.4% of renters are renewing their leases, up from 47.6% a year ago, RentCafe reports. The trend suggests renters are prioritizing stability, officials theorized. Although new apartment supply in the region increased by 0.63%, up from 0.48% in early 2024, RentCafe analysts note that the modest bump may not meet the strong demand. The region's occupancy rate is at 96.0%, with apartments vacant for an average of 44 days. Competition remains intense, with 13 prospective renters per available unit, the data shows. Renters in eastern L.A. County stay in their homes for an average of 40 months, significantly longer than the national average of 28 months. RentCafe's Rental Competitiveness Index, a figure that ranks how competitive housing is in certain regions, lists east L.A. County as 17th in the nation, up from the previous year. In western L.A. County, which includes Santa Monica, Marina Del Rey, Culver City and Inglewood, renters are feeling a similar pressure. RentCafe data shows lease renewals rose to 41.6%, compared to 37.6% in early 2024. But, the supply of new apartments dropped sharply; just 0.18% new units were added, down from 0.57% last year. Occupancy remains strong at 93.0%, with apartments vacant for an average of 44 days. Each available unit sees about eight prospective renters, and renters in this region typically stay in their homes for 30 months, data showed. The Rental Competitiveness Index score for west L.A. County increased to 71.0, up from 64.8 in early 2024, RentCafe reports. Despite these mounting pressures on renters, RentCafe says the greater Los Angeles region falls short of the most competitive rental marketplaces in the U.S. Topping the list is Miami, followed by the Chicago suburbs and North New Jersey. The 20 most competitive rental markets in early 2025 are below: Rank Market Competitive Score Average Vacant Days Occupied Apartments Prospective Renters Lease Renewal Rate Share of New Units Miami, FL 93.1 36 96.3% 14 76.0% 1.39% Suburban Chicago, IL 88.4 39 95.4% 10 70.4% 0.26% North Jersey, NJ 85.7 41 95.2% 9 71.4% 0.14% Lansing – Ann Arbor, MI 85.4 38 95.0% 6 70.2% 0.00% Suburban Philadelphia, PA 85.3 44 94.9% 9 77.1% 0.09% Grand Rapids, MI 85.3 38 95.6% 7 74.3% 1.03% Cincinnati, OH 84.5 42 94.3% 10 66.4% 0.00% Omaha, NE 84.4 38 94.7% 8 66.4% 0.59% Bridgeport – New Haven, CT 84.2 40 95.4% 10 66.4% 0.81% Milwaukee, WI 82.8 43 94.0% 8 70.1% 0.00% Suburban Twin Cities, MN-WI 81.3 40 94.2% 7 65.1% 0.57% Detroit, MI 80.9 43 93.5% 7 69.3% 0.11% Broward County, FL 80.4 42 94.6% 10 70.1% 1.47% Orange County, CA 80.0 45 95.6% 10 60.6% 0.15% Kansas City, MO 79.7 41 93.6% 7 68.7% 0.91% Silicon Valley, CA 79.6 39 95.1% 10 53.8% 0.93% Eastern Los Angeles, CA 79.4 44 96.0% 13 51.4% 0.63% Chicago, IL 79.3 40 94.4% 8 59.2% 0.54% Orlando, FL 79.0 39 94.4% 8 67.6% 1.76% Eastern Virginia, VA 78.7 42 93.4% 8 63.9% 0.61% RentCafe provides rental data with insights provided from from the extensive real estate data platform Yardi, its parent company. For more details about nationwide rental competition ratings, click here. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
21-03-2025
- Business
- Yahoo
REPORT: Fayetteville ranked most competitive small rental market
RELATED VIDEO: Fayetteville Mayor Rawn says housing crisis top priority (Mar. 20, 2025) FAYETTEVILLE, Ark. (KNWA/KFTA) — Fayetteville has been ranked the most competitive small rental market in the U.S., according to a new report. RentCafe's Rental Competitiveness Report, which examines rental market trends in 139 metro areas, identifies high occupancy rates, short vacancy periods and strong lease renewal rates as the main factors contributing to increased competition. Currently, 97% of apartments in Fayetteville are occupied, leaving 3% available for new renters. The lease renewal rate has risen to 75%, limiting turnover and reducing the number of open units. Each vacant apartment now receives an average of nine applicants, up from six at the start of 2024. Apartments in Fayetteville stay on the market for an average of 22 days before being leased. HOUSING CRISIS TIMELINE: Fayetteville ranked second most competitive small rental market in U.S. The city's Rental Competitiveness Index (RCI) score at the start of 2025 is 91.7 out of 100, ranking just behind Miami's 93.1, the highest in the nation. Apartment availability increased from 2.25% in 2024 to 3.91% in 2025, while lease renewal rates also grew from 73.3% to 75%. The number of applicants per vacant unit dropped from 11 in 2024 to nine in 2025. Rank Market Competitive Score Average Vacant Days Occupied Apartments Prospective Renters Lease Renewal Rate Share of New Units Fayetteville, AR 91.7 22 97.0% 9 75.4% 0.49% Lehigh Valley, PA 90.5 38 96.5% 13 80.0% 0.00% Lafayette, IN 87.4 34 96.6% 10 73.1% 0.00% Providence, RI 84.4 37 95.8% 11 72.2% 0.73% Little Rock, AR 83.7 32 93.8% 7 71.7% 0.00% Harrisburg, PA 82.3 41 95.6% 9 76.5% 1.07% Youngstown, OH 82.2 42 94.7% 8 74.7% 0.00% Boise, ID 82.1 36 94.9% 13 59.1% 0.77% Jackson, MS 81.3 38 93.0% 7 73.1% 0.00% Worcester – Springfield, MA 81.2 49 96.0% 15 61.9% 0.18% Rochester, NY 80.9 46 95.1% 8 77.1% 0.17% Dayton, OH 80.8 39 94.3% 7 70.7% 0.00% Madison, WI 80.4 41 94.8% 9 67.4% 0.24% South Bend, IN 80.2 37 93.9% 4 75.7% 0.00% Knoxville, TN 80.1 34 94.8% 7 67.5% 0.87% Toledo, OH 79.4 42 94.1% 6 73.4% 0.00% Amarillo, TX 79.1 31 93.4% 6 62.5% 0.00% Palm Beach County, FL 78.9 42 95.0% 10 71.6% 1.81% Lubbock, TX 78.4 33 93.9% 6 61.4% 0.00% To read the full report, click here. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
NBC News
05-03-2025
- Business
- NBC News
These are the most competitive rental markets in the U.S.
New apartment construction hit a record high last year, but all that new supply is apparently not enough to cool the competition in the market. Getting a rental is actually becoming even more difficult, according to a new report from RentCafe, an apartment search site. Last year, developers completed close to 600,000 multifamily units, according to the U.S. Census. That is the highest level since 1974 and a 34% increase from 2023. New York City, Dallas and Austin, Texas, led in the number of new rentals. Despite that, on a national level, rental competitiveness rose at the start of this year, according to RentCafe's Rental Competitiveness Index. That's in large part because a growing number of renters are not moving. Lease renewal rates rose to 63.1% in the early part of this year, compared with 61.5% in the early part of last year, according to RentCafe. Much of that is likely due to higher mortgage rates and higher prices in the for-sale housing market. Apartment occupancy is also holding firm at 93.3%, slightly higher than at the beginning of last year. In addition, landlords are offering longer lease periods, which then lead to extended renewal periods, according to the report. As a result, each available apartment has an average of seven applicants. Looking locally, Miami has the highest occupancy rate. It is the most competitive, with an average 14 applicants for each unit. 'Throughout the last few years, Miami has established itself as 'Wall Street South,' attracting major banking institutions and investment firms, while existing industries like tech and healthcare continue to grow, bringing in more workers,' wrote Veronica Grecu, senior creative writer and researcher for RentCafe, in the report. 'Plus, Miami's lack of income tax and its location at the crossroads of the Americas remain major draws for professionals and businesses.' The Midwest, however, leads in overall rental competitiveness. Ten of the top 20 hottest rental markets are in the region, with suburban Chicago coming in second behind Miami. Others include Detroit, Lansing and Grand Rapids in Michigan, as well as Cincinnati, Ohio; Milwaukee, Wisconsin; and Minneapolis–Saint Paul, Minnesota. Rents, which had been easing, are now on the rise again. Nationwide, rents increased 0.3% in February, the first monthly increase in rents following six consecutive months of declines, according to ApartmentList. February is the start of the historically busy season in the rental market, and rents are expected to rise throughout the summer. Rents are still 0.4% lower than they were in February of last year, however. Following a period of record-setting rent growth in 2021 and the first half of 2022, the national median rent has now fallen below its August 2022 peak by a total of 4.6%, or $67 per month, according to ApartmentList. The typical rent price, however, is still 20% higher than it was in January 2021. 'Year-over-year rent growth has now been negative since June 2023, but in recent months, there are signs that a return to positive growth is on the horizon,' according to the ApartmentList report's authors.
