Most competitive rental markets in 2024
By Quinn Purcell, Managing Editor
In the latest year-end report by RentCafe, metros across the nation were looked at and ranked in terms of competitiveness. RentCafe analyzed the 139 largest markets in the U.S. with available data, ranking them based on five key metrics for rental competitiveness:
- Number of days apartments stayed vacant
- Percentage of rentals that were occupied
- Number of prospective renters competing for an apartment
- Percentage of renters who renewed their leases
- Share of apartments completed this year
Using these metrics, RentCafe calculates a score to each market and to the country as a whole. Dubbed the Rental Competitiveness Index (RCI), RentCafe found that the national RCI reached 74.4 or "highly competitive" in 2024. This is up significantly from last year's moderately competitive score of 59.5.
Breaking down each metric, we can see specific changes in the market compared to 2023.
U.S. Rental Market Competitiveness in 2024
Like last year, there was an average of nine renters competing for a vacant apartment at the same time. However, 2024 saw the average number of days rentals were vacant rise to 40 days, up from 38 last year.
This year, nearly 2.6% of all available apartments were built nation-wide, compared to 1.9% last year. Renters were also increasingly keeping a hold of their leases in 2024: 62% of renters renewed, compared to 60% in 2023.
Apartment occupation dropped slightly but largely remained unchanged at 93.6%—down from 94% last year.
Rental Competitiveness by Region in 2024
Looking at where rental markets are the most competitive, we see the Northeast lead the way with an RCI score of 79.2. Also above the national average score is Florida (78.2), the Midwest (78.1), the Mid-Atlantic (77.2), and the South (75.8).
The regions that had a better-than-average Rental Competitiveness Index include the Pacific Northwest at 68.9, the West (70.7), Southeast (70.8), Southwest (71.1), and California (73.1).
When you dive deeper into individual metropolitan areas, however, you can see competitiveness increases significantly.
Top 10 Most Competitive Rental Markets in 2024
- Miami, Fla., leads the nation with a competitive score of 91.2. The city dominates as the hottest rental market in the U.S. in 2024, according to RentCafe.
- Suburban Chicago, Ill., follows closely behind with a score of 88.
- Wilwaukee, Wis., has a score of 85.7.
- Bridgeport–New Haven, Conn., has a score of 83.4.
- Grand Rapids, Mich., has a score of 83.2.
- North Jersey, N.J., has a score of 82.6.
- Chicago, Ill., has a score of 82.5, not too far from its suburban counterpart.
- Suburban Philadelphia, Pa., has a score of 81.5.
- Omaha, Neb., has a score of 81.3.
- Silicon Valley, Calif., has a score of 80.9.
There are several metros that may not have had the highest RCI, but had a significant jump compared to 2023. Louisville, Ky., rose to an RCI of 76.3—a jump of 8.8 points. This indicates that the metro was hotly trending this year.
Following in Louisville's footsteps are The Piedmont Triad, N.C., with a 8.6 point increase; Suburban Chicago with a 7.8; Silicon Valley, Calif. (7.5); and Las Vegas, Nev., (7.1).
To read the full report, visit RentCafe here.