RentCafe: Miami Tops List of Competitive Markets, Chicago Close Behind

(Image courtesy of RentCafe, via RentCafe analysis of Yardi Matrix data)

RentCafe, Santa Barbara, Calif., found Miami remained the most competitive rental market in peak rental season, but the Chicagoland area is hot, too.

Nationwide, RentCafe’s national Rental Competitiveness Index shows a score of 74.6, indicating a very tight rental market in the peak season.

RentCafe looks at factors including the number of days apartments were vacant, the percentage of apartments occupied, the number of prospective renters competing for an apartment, the percentage of renters who renewed their leases and the share of new apartments recently completed.

However, despite being very competitive, the market has softened a bit year-over-year, as a substantial amount of new units have come online recently or are on track to open by year-end.

Broken down by region, the Northeast is the most competitive, with a score of 80.5, followed by the Midwest at 80.4. The least competitive is the West, at 69.8.

By metro area, Miami has a score of 92.2. No. 2 and 3 on the list are both Chicagoland–with Chicago at a score of 89 and suburban Chicago at a score of 88.4. Manhattan is No. 4 at 85.1 and the Suburban Twin Cities area is at 84.3.

Rounding out the top 10 are Milwaukee, Wis., Brooklyn, N.Y., Omaha, Neb., Grand Rapid, Mich., and the suburban Philadelphia area.

Looking at small rental markets, Lafayette, Ind., tops the list with a score of 93.8 and a striking 96.9% occupancy rate–meaning only about 3% of apartments are currently available.

Also on the list of the most competitive small markets are Fayetteville, Ark., Lehigh Valley, Pa., Harrisburg, Pa., and Madison, Wis.