Rentals in once popular markets like New York dived last summer as Americans working remotely fled to the suburbs in search of more space and a better quality of life.
For most of the past 50 years, about a third of American households have rented their homes, according to the Brookings Institution. Rental rates increased during the recession of 2007-2009 and remain relatively high today, at 35.6%, according to the Joint Center for Housing Studies at Harvard University.
Much has changed during the pandemic, and rental markets seem to be one of them. A study by apartment search site RENTCafe.com have discovered new, emerging rental hubs – mid-sized cities with more affordable, slower lifestyles – are attracting tenants from large metropolitan areas, possibly due to a radical shift towards remote working.
To find these hot new rental markets, RENTCafe researchers analyzed Yardi Systems’ apartment market data across 125 U.S. rental markets, using data from competitively leased (market-priced) large-scale multi-family properties from more than 50 units. They looked at the percentage of occupied apartments, the average number of unoccupied rental days, the average number of potential tenants competing for apartments, and the trend in rent prices (if the annual trend in rents was upward, downward). declining or neutral during each month of the first quarter of 2021).
According to the RENTCafe study, these are the most competitive US rental markets in 2021.
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