Before creating or signing a rent agreement form, tenants and rental property investors are keen to learn the most popular rental market locations in the U.S. With this critical information, landlords can better choose the ideal property location to invest in a rental. With these facts, tenants can also find the perfect location to rent a property.
In this article, we examine the seven most popular rental market locations in the U.S. in 2023.
Which Location Has the Most Competitive Rental Market 2023?
Despite high housing prices causing many young adults to move home with their parents, one location that has the most competitive rental market in 2023 is Miami. The area has record-high lease renewal rates, and experts suggest this is because it has a thriving technology scene, doesn’t have an individual income tax, and is ideal for businesses and startups.
Tenants searching for a place to call home in Miami find that nearly all apartment dwellings are occupied and that 75% of tenants have chosen to renew their leases.
Top 7 U.S. Locations for Rental Markets in 2023
But what are the top seven U.S. locations with exceptional rental markets in 2023? Our list below will give you all the key information about this.
1. Grand Rapids, Michigan
From young professionals to families, many people choose to live in Grand Rapids, Michigan. It is a relaxed location, yet growing in popularity, and many tenants have struggled to find a property or apartment for rent in the area throughout 2022 and the beginning of 2023.
More than two-thirds of renters stayed put and chose to renew their contract with the landlord, so the supply in Grand Rapids hasn’t met the demand for housing.
2. Orlando, Florida
Orlando is one of the most popular locations in Florida. It boasts the most competitive market for rental properties and apartments; nearly 75% of apartment dwellers opted to renew their lease at the beginning of 2023.
Nearly 97% of the apartments up for rent have been occupied, and those that were vacant were filled in just 28 days.
3. Harrisburg, Pennsylvania
In the Harrisburg location, low living costs and the family-friendly vibe draw renters in and encourage them to stay. It has one of the most competitive rental markets because, from this location, it is easy to get to other nearby areas such as Baltimore.
Two statistics that best show the surge in the Harrisburg rental market include the following: 75% of tenants renewed their leases in the area, and landlords took just 33 days to find tenants for their vacant properties after just 33 days (on average).
4. North Jersey, New Jersey
North Jersey has a highly competitive rental market. Following the pandemic, many tenants have flooded into the area to find affordable apartments; the competitive state of the rental market in North Jersey is shown by the 97.2% occupancy of apartments in the area.
Likewise, 75% of tenants renewed their leases in North Jersey at the end of 2022 and into 2023.
5. Milwaukee, Wisconsin
In Milwaukee, approximately two-thirds of tenants remained in the area and renewed their leases. Many renters moved to the area from Chicago to reap the benefits of lower living costs.
Vacant apartments in Milwaukee, Wisconsin, were filled in just 29 days (on average), and those looking for a new place struggled to find apartments due to the competitiveness of this rental market.
6. Central Jersey, New Jersey
Tenants moving to the Central Jersey area at the end of 2022 encountered challenges finding an apartment. This area had the highest renewal rate of most of the markets at over 85%.
With the low number of newly built apartments in Central Jersey and competition to fill the existing vacant apartments, it took an average of 41 days to fill these properties.
7. Orange County, Southern California
Even though rents have begun to skyrocket in Los Angeles, many tenants are attracted to the more affordable homes in Orange County. The rental market is booming due to the thriving economy and diverse employment options.
In Orange County, apartments are the most popular choice for tenants despite the low housing supply.
Keeping an Eye on the Popular Locations for Top Rental Markets: Key Points
Selecting a location to rent a property or invest in rental property can be difficult, but by frequently checking the rental market trends, you can make a more informed choice. The key factors to check when reviewing popular locations in terms of rental markets include the days to fill an apartment, the lease renewal rates, and living costs. With this information, you will find the right property, whether you are a landlord or a tenant.