2024 Year-End Report: Miami’s Competitiveness Wanes With Suburban Chicago and Milwaukee Closing In

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The Midwest stands out as a red-hot region for renters in 2024, with five markets in the nation’s top 10 and two on the podium — Suburban Chicago and Milwaukee. Offering lower living costs, many Midwestern markets appeal to remote workers in search of spacious, budget-friendly housing. Additionally, the region’s growing focus on tech, manufacturing, and renewable energy continues to attract job seekers looking for affordable places to live.

Still, Miami maintains its hold as the hottest rental market in 2024, despite Florida’s waning appeal due to prolonged competition and a high cost of living. However, Chicagoland is quickly closing in.

Key Takeaways:

  • The national RCI score of 74.4 reflects a highly competitive rental market, with more renters staying put compared to 2023 — a trend that is likely to continue next year.
  • Miami holds the top spot, but its dominance faces growing competition from Suburban Chicago and Milwaukee, showcasing the Midwest’s strong appeal for apartment hunters.
  • Louisville, KY, emerged as the fastest-growing market for renters in 2024 due to limited available apartments. It is followed by North Carolina’s Piedmont Triad.
  • In Lehigh Valley, PA — the hottest small market for apartment hunters in 2024 — more than 80% of renters stayed put, faced with extremely limited options to choose from.

Whether they were looking to take advantage of the opportunities and perks of big-city living or simply wanted to enjoy more quiet places throughout the U.S., those looking for apartments for rent faced intense competition all year long.

But, what were the hottest rental markets in 2024? To find out, RentCafe.com analyzed the 139 largest markets in the U.S. with available data, ranking them based on five key metrics for rental competitiveness. These metrics were:

  • the number of days apartments stayed vacant
  • the percentage of rentals that were occupied
  • the number of prospective renters competing for an apartment
  • the percentage of renters who renewed their leases
  • the share of apartments completed this year

Using these key indicators, we calculated a Rental Competitiveness Index (RCI) to measure how hot the U.S. market was in 2024. The national RCI score of 74.4 indicates that American renters experienced a highly competitive market this year.

More rental options haven’t eased the market: High renewal rates keep competition tight nationwide

The record-breaking surge in new apartment construction continues to influence the U.S. rental market, as evidenced by the fact that about 32% of the 139 markets analyzed have become more relaxed compared to 2023. On average, it now takes 40 days for a vacant apartment to be rented, with nine prospective renters competing for each available unit. That’s two days longer than one year ago (38 days), when the same number of apartment-seekers were vying for each vacant unit.

U.S. Rental Market Competitiveness in 2024

But, even with a 2.59% increase in available apartments — outpacing the 1.89% growth seen in 2023 — the housing supply remains a pressing issue. This has driven lease renewal rates to 62.2% in 2024, up from 60.2% last year. Nationwide, 93.6% of rental apartments are occupied, which is only slightly below the 94% occupancy rate recorded in 2023.


Many renters opt to stay put to avoid the hassle that comes with increased competition, while those who are actively looking for an apartment need to act swiftly to secure an apartment that fits their needs. On top of that, the combination of the high prices of buying a home, mortgage rates and cost of living often keeps would-be buyers in the rental market longer, further fueling the competition for apartments.


Meanwhile, looking at the competitiveness of U.S. regions in 2024, the Northeast leads the charge with an RCI score of 79.2. Florida comes next with a score of 78.2, just ahead of the Midwest, which has an RCI score of 78.1. Next in line is the Mid-Atlantic (RCI score 77.2), followed by the South (RCI score 75.8). Further down the list, California has an RCI score of 73.1, followed by the Southwest (RCI score 71.1) and the West (RCI score 70.7). Finally, the Pacific Northwest ranks lowest, with an RCI score of 68.9.

Miami ranks 1st but its edge slips as Suburban Chicago and Milwaukee become sizzling hot

Although Miami and Suburban Chicago were locked in a fierce battle for the title of most competitive renting spot in peak season, the end of the year paints a slightly different picture: Boasting an RCI score of 91.2, Miami dominates as the hottest rental market in the U.S. in 2024. Despite a surge in new apartments throughout the last few years, Miami continues to attract professionals drawn to its booming tech and finance sectors; no-tax policies; and strategic position as a gateway to Latin America. Naturally, this steady influx of new residents continues to fuel demand for housing throughout the metro.

However, the metro shows signs of softening compared to 2023. Specifically, apartments in Miami are snatched up in a little more than a month (33 days, which is two days longer than last year) with 18 renters competing for each available unit — down from 22 a year ago. Even so, the metro’s occupancy rate remains high at 96.5%. That’s slightly below this time last year, despite renters having more choices thanks to a strong, 4.12% increase in apartment supply in 2024 — well above last year’s growth of 3.71%.

Driven by the Midwest’s economic resurgence, corporate relocations and expansions have reshaped the rental market in Chicago’s suburbs throughout the last several years. Coupled with greater affordability compared to major metros, Suburban Chicago emerged as the nation’s second-hottest rental market in 2024 with an RCI score of 88.

Additionally, hipsturbia continues to fuel competition throughout the areas in places like Arlington Heights, IL; Barrington, IL; Deerfield, IL; Evanston, IL; Glenview, ILNaperville, IL; and Oak Brook, IL, keeping the overall occupancy at a high 95.4% (in line with last year’s figure). And, with the share of new apartments dropping from 1.56% in 2023 to 0.71% this year, 69.2% of renters chose to stay put, which was up 2.5% year-over-year. As a result, vacant units are filled in an average of 36 days — just one day longer since 2023 — while the number of prospective renters competing for the same unit remains steady at 14.

Chicagoland’s appeal skyrockets, placing Windy City 7th among the nation’s hottest renting spots this year

Following similar trends as Suburban Chicago, the Windy City now ranks seventh with an RCI score of 82.5, highlighting Chicagoland’s status as a hot market for apartment-seekers in 2024. As such, Chicago’s occupancy rate remains steady at 94.5% (comparable to 2023). However, a 1.87% increase in available apartments since January wasn’t enough to meet the demand for apartments in Chicago, driving the lease renewal rate up to 59.2% — a 2.2% increase year-over-year. Consequently, it now takes an average of 34 days to fill a vacant apartment, with 11 prospective renters competing for each available unit.

Despite its unemployment rate of 5.5% (which is significantly higher than the U.S. average), Chicago continues to attract a diverse workforce seeking opportunities in sectors like education, healthcare and professional services. This steady influx of new residents, along with local renters, intensified competition for housing in 2024, especially rental apartments near business centers.

Milwaukee’s rental market heats up as homebuying hurdles push more people toward renting

Homebuying challenges and a tight housing supply have driven a surge in rental demand in Milwaukee — now the third-hottest market for renters with an RCI score of 85.7, up from 80.3 in 2023. Millennials delaying home purchases, Gen Zers starting to rent after college and remote workers attracted by Milwaukee’s affordability are all having a tough time finding apartments in Milwaukee due to limited available options. This is further amplified by the fact that vacant apartments account for less than 5% of all rental units.

Adding to this, newly built apartments represent just 2.01% of the total rental supply, which is a sharp decline from 2.91% in 2023. As a result, 70% of renters chose to renew their leases, which was slightly more than in 2023. Accordingly, the average vacant unit in Milwaukee is filled within 36 days, with 12 renters competing for each apartment.

Along with Suburban Chicago, Louisville, Piedmont Triad, and Silicon Valley also heated up

Compared to 2023, several metros in our analysis have experienced notable jumps in their RCI scores. In most cases, this increased competitiveness stems from higher lease renewal rates coupled with a decline in new apartment construction.

Among these, Louisville, KY, stands out as the top-trending rental market in 2024. More precisely, its RCI score jumped by 8.8 points since last year to 76.3 to place it in 26th place in our ranking. This increase is largely due to a 5.4% rise in lease renewals, driven by a clear mismatch between supply and demand. With a strong job market dominated by industrial sectors and a cost of living that’s 6% lower than the U.S. average, apartments in Louisville are a popular option for those looking for more affordable options compared to pricier metro areas.

Similarly, the Piedmont Triad in North Carolina saw its RCI score rise by 8.6 points in the last year to 73.2 now. This manufacturing and transportation hub — which includes Greensboro, Winston-Salem, and High Point — is facing a severe housing shortage as demand continues to grow. And, with new apartment construction slowing to a 1.32% increase in 2024 (down from 2.86% in 2023), rental competition has become even tighter this year.

Back in the Midwest and demonstrating Chicagoland’s soaring popularity among apartment-hunters this year, Suburban Chicago also stands out as a trending renting spot in the U.S., with its RCI score rising 7.8 points from 80.2 in 2023.

Meanwhile, in sunny California, Silicon Valley has seen its RCI score grow by 7.5 points to 80.9, driven by the tech sector’s revival. Further inland in the West, Las Vegas has also seen increased competition: Its RCI went up 7.1 points to 73.2, fueled by its strong economy built on tourism, hospitality and entertainment.

What can renters expect in 2025? Slightly less competition due to a wave of new apartments opening nationwide

Next year’s rental season is likely to be slightly less competitive than it was in 2024, thanks to the influx of new apartments projected to open nationwide throughout 2025. This increased supply is expected to ease some of the pressure on the rental market, making it less challenging for renters to find available units. This is mostly reflected in the occupancy trends for the vacancy rate and the number of renters per vacant unit.

Click on each tab below to view the historical trends and forecasts for each rental competitiveness metric:

 

On the other hand, the high share of lease renewals remains an important component that’s expected to sustain a certain level of competitiveness. It’s worth noting here that this metric is influenced by a number of factors, including the persistently high price of buying a home, as well as the additional taxes, fees and financial responsibilities that come with owning a property.

The Midwest leads in rental competitiveness this year, claiming 9 of the top 30 spots

With many residents in coastal areas — including Florida — spending a significant portion of their income on housing, more renters are seeking affordable living options further inland that offer a balance between urban amenities and cost of living.

So, fueled by its economic revival, the Midwest shines as the nation’s hottest region for renting after securing nine spots in our top 30 hottest rental markets for 2024, including two on the podium — Suburban Chicago and Milwaukee.

Not to be outdone, Grand Rapids, MI, ranks third in the region (and fifth in the U.S.) with an RCI score of 83.2, thanks to a boost in its lease renewal rate, which went up from 69.9% in 2023 to 70.6% this year. Here, those looking for apartments in Grand Rapids faced tight competition with less than 5% of rental units available. While the local housing supply grew by 1.56% this year (up from 1.04% in 2023), demand remains high, leaving most apartments on the market for just 36 days and nine renters competing for each unit.

Further east in Michigan, Lansing-Ann Arbor (#6 in the Midwest and #9 in the U.S. with an RCI score of 80.8) faces a similar situation: Two-thirds of renters renewed their leases, which is up from 65.4% in 2023, despite a 0.82% increase in apartment supply. This pushed the occupancy rate to 94.4%. As a result, available apartments in LansingAnn Arbor are filled in an average of 37 days, with eight renters competing for each unit.

Staying in Michigan, Detroit — which emerged as the most coveted spot for apartment hunters in September — ranks as the Midwest’s eighth-hottest market for renters and 20th in the nation. Specifically, its RCI score rose by 5.3 points since 2023 to reach 77.6. Plus, like other metros in the region, Detroit saw its lease renewal rate climb year-over-year, increasing from 67% to 68.7%. Accordingly, the metro’s occupancy rate rose to 93.4%, which is slightly higher than last year, even though renters now have more options thanks to a 0.60% increase in the housing supply in 2024.

The Northeast stays very competitive despite many new apartments opening this year

Known for its supply challenges and higher-than-average home prices, the Northeast also emerged as a tough region for renting, with eight major metros ranking in the top 30 for 2024. This is no surprise, as this area offers a good mix of job opportunities in industries like finance and tech; world-class education with universities such as Harvard and MIT; and extensive public transportation systems that make commuting a breeze.

Leading the pack in the Northeast is Bridgeport-New Haven, CT, which ranks #1 in the region and #4 in the U.S. with an RCI score of 83.4, up from 76.8 in 2023. Here, steady population growth, fueled by families and younger renters — including from abroad — who are drawn to biotech and education jobs has increased competition in the area.

However, this surge in demand has strained the already limited housing supply with new apartment construction slowing from 1.90% last year to 1.23% this year. As a result, renters now face tight conditions with only 4.5% of units available. That prompts 63.1% of residents to renew their leases, which is slightly more than last year. On average, apartments in BridgeportNew Haven stay vacant for 38 days, with 14 renters vying for each unit.

Next, North Jersey is the nation’s sixth hottest rental market and second in the Northeast. Its high appeal comes from its close location to New York City; excellent transportation options; and a strong job market, especially in tech and innovation.

Of course, high home prices and living costs have made renting the preferred choice for many in this part of New Jersey — but there still isn’t enough housing to meet the demand, even with a 2.64% increase in new apartments, which is well above last year’s supply growth. That’s why 70.8% of apartment-dwellers renewed, which is slightly more than in 2023, pushing the occupancy rate to a high 95.6%. As a result, vacant units in places like Jersey City; Hoboken; Newark; and Morristown are filled within an average of 38 days, with 12 renters competing for each apartment.

New York City’s economy and lifestyle are the driving force behind the competition for rentals in the Northeast

In particular, Brooklyn, NY, shines as the 12th hottest renting spot in the U.S. and sixth in the Northeast with its RCI score climbing from 75.1 in 2023 to 80.6 this year. Although new apartments account for 2.13% of the borough’s housing supply (a significant increase from 2023) rentals remain incredibly scarce. This has led 69.8% of Brooklyn renters to renew their leases — a whopping 5.2% increase from last year. Furthermore, with less than 4% of the apartments in Brooklyn available, competition is fierce with 10 renters vying for each unit, which typically stays on the market for 39 days.

Manhattan (RCI score 78.9) follows far behind, claiming 19th place in the U.S. and sixth in the region— but living in the heart of the action doesn’t make the search for apartments much easier. With new units accounting for a mere 0.25% of the local supply, the occupancy rate stands at 95.2%, which is slightly higher than in 2023. This prompted 64.7% of apartment-dwellers to stay put, which represents a 2.2% increase since last year. That said, vacant apartments in Manhattan are filled within 40 days, on average, with eight renters competing for each unit.

More than 80% of renters renewing leases in Lehigh Valley, the hottest small market for renting in 2024

Apartment hunting isn’t just tough in big urban hubs: Smaller towns with more affordable, but limited housing and lower living costs are also challenging for renters of all ages and incomes. Even in these quieter areas — particularly those with lots of students — finding apartments has been really tough this year. That said, the Northeast claims nine spots in the top 30 small rental markets, further cementing its status as a very hot region for renting.

To that end, Lehigh Valley, PA, emerged as the nation’s hottest small rental market in 2024 with an RCI score of 90.1, which is up 6.5 points from one year ago. This surge in competitiveness is largely due to a minimal 0.14% increase in new apartments, marking a sharp drop from the 2.64% growth in the local supply in 2023.

Besides locals and remote workers, the area’s high demand is also fueled by students from local colleges and universities, prompting 80.7% of current renters to renew their leases (up from 79.8% last year). As a result, prospective renters face tough competition with less than 4% of units available. What’s more, apartments in Lehigh Valley stay on the market for 39 days, on average, with 15 renters competing for each unit.

Next, highlighting Northwest Arkansas’ growing popularity — but also its housing challengesFayetteville, AR, ranks as the second-hottest small rental market, boasting an RCI score of 88.7. While the market shows signs of softening compared to 2023, competition remains high.

That’s because, despite a strong 3.91% increase in apartments for rent in Fayetteville (up from 2.25% last year), there are still not enough rentals to come by, leading 73.3% of renters to renew their leases. Even so, available apartments fly off the shelves within 22 days — the fastest among all markets analyzed — with 11 prospective renters competing for each unit.

Renters in Central Arkansas are also facing intense competition, especially in Little Rock, which ranks as the third-hottest small place for renting in the U.S. this year. Little Rock’s RCI score jumped 4.3 points since 2023 to now reach 88.1. Here, the area’s thriving job market, driven by the expanding tech sector around the Little Rock Technology Park and the University of Arkansas, has created high demand for apartments.

Yet, even with a 1.21% increase in apartment supply in 2024 — compared to zero new apartments opened last year — there still aren’t enough units to meet demand. This has pushed the occupancy for apartments in Little Rock to 95.6%, up 1.3% year-over-year. Under these tight conditions, nearly three-quarters (73%) of renters here renewed their leases, compared to 70.5% in 2023. As a result, 10 renters are competing for each vacant unit, which stays on the market for an average of 26 days.

Despite more choices for renters, other small markets throughout the U.S. also feel the effect of higher lease renewal rates

Lafayette, LA, ranks fifth among the hottest places for renting in the U.S. in 2024. Even as the local supply of housing grew by almost 2% — significantly slower than in 2023 — nearly 70% of renters chose not to move, marking an 8% year-over-year increase. This spike in lease renewals is second only to Wyoming (the 34th-hottest market), where the share of renters who renewed jumped by 9.4% from last year, reaching 61.7%.

That said, Lafayette’s RCI score has gained 7.2 points compared to 2023 to now stand at 86.1, suggesting that it has become significantly hotter for apartment-seekers.

Other small markets that are very hot in 2024 include Madison, WI (RCI score 85.3); Harrisburg, PA (RCI score 85.3); Youngstown, OH (RCI score 84); Tulsa, OK (RCI score 81.8); Rochester, NY (RCI score 81.3); Knoxville, TN (RCI score 81.2); Dayton, OH (RCI score 81.1); Portland, ME (RCI score 81); Asheville, NC (RCI score 80.5); El Paso, TX (RCI score 77.8); White Plains, NY (RCI score 77.3); Des Moines, IA (RCI score 77.2); and Fort Wayne, IN, closing the top 30 with an RCI score of 76.9.

Worcester-Springfield, Palm Beach County, Tacoma have become hotter, even with many new apartments built this year

Higher lease renewals compared to last year have also driven up RCI scores in several other U.S. rental markets. Among them, Worcester-Springfield, MA, (#8 nationwide) is the top-trending small market for renters after experiencing the biggest increase in its RCI score, which jumped 10.3 points to 84.6. Yet, while the supply of apartments in WorcesterSpringfield grew by 1.54% this year (up from 0.84% in 2023), it still falls short of meeting the soaring demand.

Here, locals and newcomers are drawn by the area’s affordability compared to Boston, along with college students and faculty seeking off-campus housing. As a result, vacant units make up less than 4% of all rentals with each available apartment attracting 17 renters — five more than last year. On average, apartments here are rented within 40 days.

Similarly, Florida’s Palm Beach County saw its RCI score climb 9.3 points since 2023 to 83.8 to earn the 10th spot among the nation’s hottest small markets for renting apartments. This surge is driven by a notable 6% year-over-year increase in the lease renewal rate, which is now at 68.9%, despite a 3.34% growth in housing supply this year, up from 2.70% in 2023. Notably, Palm Beach County attracts a high concentration of professional workers, including private sector employees, those in technology and a significant number of education professionals.

In the Pacific Northwest, Tacoma, WA, also saw its rental market become hotter with its RCI score rising by 9.3 points since 2023 to 72.5. In fact, the City of Destiny ranked seventh among the most coveted renting spots in RentCafe.com’s Mid-Year Rental Activity Report, driven by good job opportunities and more reasonably priced apartments close to Seattle. However, the 3.59% increase in apartment supply did little to ease demand, leading 57.3% of renters to renew their leases, up from 53.3% a year ago.

Elsewhere in the U.S., those renting in Boise, ID, also faced more competition for apartments, with the market’s RCI score rising 8.8 points to reach 73.2. Likewise, in Florida, the competition for apartments in Pensacola heated up, as well, after an 8.7-point increase in the area’s RCI score, which now stands at 71.8. And, renters looking for apartments in Lubbock, TX, faced more competition compared to 2023 as the market’s RCI score caused an 8.6-point boost to now stand at 74.2. At the same time, New Orleans saw an 8.5-point uptick in its RCI score, which now stands at 78.1, ranking it 20th among the nation’s hottest small places for renting apartments.

Browse the maps below to see the other regions’ rental competitiveness in 2024:

Methodology

To compile this report, RentCafe.com’s research team analyzed Yardi Systems apartment data across 139 rental markets in the U.S. The data comes directly from market-rate, large-scale, multifamily properties of at least 50 units. Fully affordable multifamily properties were excluded.

The markets were ranked based on a market competitive score. To calculate each market’s score, we ranked them according to five metrics and their averages for January through September 2024 — apartment occupancy rate; average total days vacant; prospective renters per vacant unit; renewal lease rate and share of new apartments completed during the same timeframe.

We then compiled an average ranking by assigning a percentage weight for each metric: 30% for apartment occupancy rate; 15% for average vacant days; 15% for prospective renters per vacant unit; 30% for renewal lease rate; and 10% for the share of new apartments.

In this study, the terms “market,” “area,” “metro,” and “location” are used interchangeably and are as defined by Yardi Matrix markets.

Fair use and redistribution

We encourage you and freely grant you permission to reuse, host, or repost the research, graphics, and images presented in this article. When doing so, we ask that you credit our research by linking to RentCafe.com or this page, so that your readers can learn more about this project, the research behind it and its methodology. For more in-depth, customized data, please contact us at  media@rentcafe.com.

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Veronica Grecu is a senior creative writer and researcher for RentCafe. With more than 10 years of experience in the real estate industry, she covers a variety of topics in residential and commercial real estate, including trends and industry news. Previously, she was involved in producing content for Multi-Housing News, Commercial Property Executive and Yardi Matrix. Veronica’s academic background includes a B.A. in Applied Modern Languages and an M.A. in Advertising and PR.

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