If you're looking for the best places to rent, your timing is good. The rental market is hot. In fact, renting is now cheaper than buying in all 50 states. It's also much more competitive, according to a new report by RentCafe. Finding a rental has become increasingly difficult, with the supply of apartments increasing by only 0.61% since January 2024. The good news is that around 29% of the 137 markets analyzed in the study show signs of softening, often with longer vacancy periods and more lease renewals.
Unfortunately, only 39% of renters make enough to afford the median-priced apartment, as a recent report by Redfin stated. That's because the typical U.S. renter earns an estimated $54,712 per year, 17.3% less, or $11,408 in dollar terms, than the $66,120 needed to afford the monthly rent for the median-priced U.S. apartment ($1,653).
All the same, rent prices increased by just .77%, or $15, between March 2023 and March 2024, according to Rent.com as reported by Kiplinger. But compared to March 2020, prices are up 21.78%, or $373.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Best places to rent 2024
As the moving season begins, finding a rental has become increasingly difficult, leading to unexpected shifts in some of the most competitive markets — in cities and suburban areas — per the RentCafe study.
| Row 0 - Cell 0 | 2023 | 2024 |
| Renters competing for an apartment | 9 | 8 |
| Average number of days an apartment is vacant | 43 | 46 |
| Percentage of renters who renewed their leases | 59.7% | 62.4% |
| Percentage of occupied appartments | 94% | 93.3% |
What are the most competitive places to rent 2024?
Although owning a home is thought to be part of the American dream, it's not for everyone, and renting has become an option worth considering. However, it's clear that renting has also become more competitive, especially when you consider the availability of rentals, the percentage of occupied apartments and the share of new apartments in these ten (out of 20) areas.
| Rank | Market | Competitive Score | Average Vacant Days | Occupied Apartments | Prospective Renters | Lease Renewal Rate | Share of New Apartments |
| 1 | Miami-Dade County, FL | 94.1 | 36 | 96.5% | 19 | 73.6% | .55% |
| 2 | Suburban Chicago, IL | 83.6 | 44 | 95.2% | 13 | 68.7% | .00% |
| 3 | North Jersey, NJ | 82.3 | 44 | 96.0% | 13 | 71.7% | .60% |
| 4 | Grand Rapids, MI | 82.2 | 43 | 95.4% | 9 | 70.7% | .00% |
| 5 | Milwaukee, WI | 81.2 | 47 | 95.1% | 13 | 69.8% | .14% |
| 6 | Silicon Valley, CA | 80.8 | 40 | 95.1% | 12 | 54.1% | .00% |
| 7 | Orlando, FL | 80.0 | 39 | 94.6% | 11 | 67.8% | .99% |
| 8 | Orange County, CA | 78.8 | 44 | 95.9% | 12 | 63.4% | .38% |
| 9 | Eastern Los Angeles, CA | 78.5 | 45 | 95.8% | 14 | 52.7% | .00% |
| 10 | Suburban Philadelphia, PA | 78.4 | 50 | 94.4% | 9 | 76.3% | .08% |
Features of the top three rental markets
Miami — Jobs, the allure of a relaxed lifestyle and sunshine pushed Miami into first place as the most competitive rental market by RentCafe. But with fewer options to choose from compared to the same time last year, the competition among apartment hunters is considerable.
For example, at the onset of the 2024 moving season, a mere 3.5% of the apartments for rent in Miami were on the market for potential renters. As a result, this led to a staggering 73.6% of apartment residents choosing to renew their lease rather than move out. For that reason, it can take 36 days for the average apartment to become occupied in Miami, with 19 renters competing for each unit.
Suburban Chicago — Coming in second, up from tenth place last year, suburban Chicago — Naperville, Joliet, Crystal Lake, Elgin, Northbrook, Evanston, Glenview and Schaumburg, are increasingly popular with Millennials looking for better (and more affordable) housing options outside of the city of Chicago.
But as renters move to Chicago’s suburbs, they are faced with high occupancy rates and current tenants choosing to renew their leases. For that reason, there are roughly 13 prospective renters competing for each available unit, and it typically takes over 40 days to fill a vacant apartment.
Northern New Jersey — In small cities across northern New Jersey, such as Hoboken, Jersey City, Newark, Union City, Passaic, Maplewood and Montclair, renters enjoy walkable downtowns, adequate entertainment, and relatively easy access to New York City. These are just a few reasons North Jersey came in third on RentCafe’s list of this season's hottest rental markets.
Even so, finding a rental in North Jersey is challenging, as highlighted by the 96% occupancy rate — one of the highest in the country — and a 71.7% lease renewal rate at the beginning of this rental season. Vacant apartments are snatched up within 43 days, with 13 prospective renters for each unit.
What are the best small markets for rentals?
Like larger rental markets, small markets tempt potential renters with shorter commutes and less traffic, small town hospitality and a slower pace of life. The hottest ten small rental markets include:
- Lehigh Valley, PA
- Madison, WI
- Providence, RI
- Fayetteville, AR
- Little Rock, AR
- Lafayette, LA
- Harrisburg, PA
- Palm Beach, FL
- Worcester - Springfield, MA
- Jackson, MS
RentCafe's research team analyzed Yardi Systems apartment data across 137 rental markets in the U.S., which were ranked based on a market competitive score. The full report can be found here.
Related Content
-
Earnings Season: Live Updates and CommentaryFourth-quarter earnings season is getting underway, and Wall Street is keeping a close eye on both results and guidance.
-
'Pickleball Tax' Battle Heads to CourtState Tax The pickleball controversy continues as a nonprofit organization takes legal action against “illegal” taxes.
-
How to Organize Your Financial Life (and Paperwork)To simplify the future for yourself and your heirs, put a financial contingency plan in place. The peace of mind you'll get is well worth the effort.
-
Saving for Your Emergency Fund: As Easy as 1-3-6An emergency fund that can cover six months' worth of expenses is far easier to build if you focus on smaller goals at first.
-
Blowout December Jobs Report Puts Rate Cuts on Ice: What the Experts Are SayingJobs Report The strongest surge in hiring since March keeps the Fed on hold for now.
-
The Wrong Money Question to Ask After Trump's ElectionIf you're wondering what moves to make with a new president moving into the White House, you're being dangerously shortsighted. Here's what to do instead.
-
All About Six Types of Auto Insurance CoverageDo you know what your auto insurance policy covers? Here's a primer on some coverage categories, along with examples of how each type of coverage works.
-
The Cheapest Places To Retire in the USWhen you're trying to balance a fixed income with an enjoyable retirement, cost of living is a crucial factor to consider.
-
Why You Should Check Your College's Financial HealthColleges throughout the country are struggling financially as enrollment shrinks and expenses rise, making it important to check the financial health of the college your or your child is attending.
-
Where to Store Your Cash in 2025Take a fresh look at budgeting and savings opportunities for where to store your cash this year, to ensure you leave no stone unturned.
