Despite a record high of nearly 600,000 new multifamily units completed last year, rental competition in the U.S. has intensified, according to a report by RentCafe. New York City, Dallas, and Austin led in new rental supply, but the national rental competitiveness still rose due to higher mortgage rates and elevated home prices keeping many renters in place. Lease renewal rates increased to 63.1% early this year, up from 61.5% the previous year. Occupancy rates remain firm at 93.3%, with landlords offering longer leases, resulting in an average of seven applicants per available apartment. Miami tops the list as the most competitive market, with 14 applicants per unit, driven by its appeal as a hub for finance, tech, and healthcare industries. The Midwest dominates the list of competitive markets, with suburban Chicago, Detroit, and Minneapolis–Saint Paul among the top contenders. Rents, which had been declining, saw a 0.3% increase in February, signaling a potential rise during the busy summer season. While rents remain 0.4% lower than last February, they are still 20% higher than in January 2021 despite a 4.6% drop from the August 2022 peak. ApartmentList notes that negative year-over-year rent growth since June 2023 may soon shift to positive growth. — news from CNBC
