The past year has seen a significant increase in the construction of apartment buildings, with over half a million rental units expected to be completed by the end of the year according to RentCafe.
However, despite this surge in new supply, another report from RentCafe has revealed that renters are still facing challenges when it comes to finding suitable apartments. This is due in part to high renewal rates as more renters choose to stay put rather than go through the hassle of moving. In fact, lease renewal rates have increased from 60.2% last year to 62.2% this year.
Ironically, while competition for available units remains fierce and drives many renters towards renewing their leases, those who are actively searching for an apartment must act quickly in order secure one that meets their needs.
Additionally, rising costs associated with financing and purchasing single-family homes have also contributed towards keeping potential buyers within the rental market for longer periods of time.
RentCafe predicts that this trend will continue into next year as well – with more renters choosing not only stay where they are but also face stiff competition when looking for new housing options.
Of course location plays a major role in these trends as different areas experience varying levels of demand and availability within their respective rental markets. Nationally speaking however there is high competition across all regions.
Miami was identified as having been particularly competitive during 2024 due its booming tech and finance sectors along with its strategic position serving Latin America – attracting professionals seeking employment opportunities alongside tax incentives.
Suburban Chicago came second on account affordability factors such corporate relocations/expansions which drew attention throughout hipsturbia locations like Arlington Heights IL; Barrington IL; Deerfield IL; Evanston IL; Glenview Il Naperville Il Oak Brook Il (all contributing toward an overall occupancy rate at or above 95%).
In addition:
Louisville KY experienced rapid growth among renter populations during last years followed by North Carolina’s Piedmont Triad. Limited availability of apartments was a common challenge in both regions.
Meanwhile Lehigh Valley PA was recognized as the hottest small market for apartment hunters during 2024 – again due to limited options available within this area.
