realestate

US Rental Markets: Top Contenders Beyond NYC and LA

Cities in one US region dominate the nation's hottest rental markets, says RentCafe.

T
he Midwest's reputation for friendly locals and good manners belies a cutthroat rental market. According to a new report by RentCafe, the region is home to 10 of the top 20 most competitive places in the country to rent, with suburban Chicago ranking second behind Miami.

    Cities like Lansing-Ann Arbor and Grand Rapids, Michigan, made it into the top 10, while Cincinnati and Milwaukee followed closely. The Rental Competitiveness Index (RCI) score, which takes into account factors like apartment vacancy and lease renewals, puts the Midwest at 79.5, surpassing the national average of 75.7.

    Despite its competitive rental market, the Midwest offers attractive draws for renters, including affordable prices, decent square footage, job opportunities, and access to outdoor adventure. Cities like Grand Rapids, ranked third in the region and sixth nationwide, are particularly appealing to young people and students moving from larger cities.

    However, not all areas are feeling the effects of new apartment construction equally. Detroit broke into the top 20 this year as rising interest in the city outpaces rental supply. In contrast, suburban Chicago's red-hot market is driven by insufficient housing, with renters choosing to stay put and occupancy rates hiking up.

    The trend of easing rents may be short-lived, as nationwide rents begin to creep back up after months of consecutive declines. Even small cities like Fayetteville, Arkansas, are experiencing a record-breaking rental market, with vacant apartments filling up in just 22 days.

US rental markets: cities beyond NYC and LA compete for top spots.