Connect with us

Hi, what are you looking for?

Business

Checking the classifieds: Rental market in the US tightens

Almost half of U.S. renters are under the age of 30. Renting is most common in dense urban areas, which are characterised by competitive real estate markets. 

Rental prices for a single room in London reached a record high in the first quarter of this year
Rental prices for a single room in London reached a record high in the first quarter of this year - Copyright AFP/File Susannah Ireland
Rental prices for a single room in London reached a record high in the first quarter of this year - Copyright AFP/File Susannah Ireland

Those hoping for a smoother renting journey in 2024 may need to adjust their expectations. Considering the high lease renewal rates during this peak season (the time of year when prices are usually at their highest), along with the 94 percent occupancy and a slower pace of construction, the rental market seems very tight. 

In terms of where growth is the greatest there has been a shift away from coastal cities. Instead so-termed ‘Chicagoland’ is now neck-and-neck with Miami as the biggest rental markets in the U.S.

Both appeal to younger people. Almost half of U.S. renters are under the age of 30. Renting is most common in dense urban areas, which are characterised by competitive real estate markets. 

These findings are according to the company RentCafe, who has released the Rental Competitiveness Report. Central to the report is a significant shift in the national rental landscape. 

The report reveals that more renters are choosing to stay put, with the lease renewal rate rising to 62 percent (up from 60 percent in peak season 2023). Additionally, fewer available units and strong demand are keeping the occupancy rate at a high 93.7 percent (a marginal 0.3 percent decrease from 2023).  
 

These limited options mean a high number of applicants for each vacant apartment: The number of prospective renters per apartment has barely shifted, dropping from 10 to 9 since last year. 
 

A consequence of the quick turnaround on vacant units provides less time for decision-making, as the average number of vacant days for an apartment increased to 39 (just 2 days up from 37 last year). 
 

In terms of future growth, the share of new apartments has dropped from 0.86 percent last year to 0.65 percent this peak season, slowing the addition of modern rentals and leaving renters with fewer options to choose from. 
 

Based on these metrics, RentCafe calculated a Rental Competitiveness Index (RCI) of 75.8 for the peak moving season, up from 69.4 in 2023, indicating a more competitive U.S. rental market. 

This is in the context of each rental market (there are 137 presented in the overall report)having its own unique dynamic.

Avatar photo
Written By

Dr. Tim Sandle is Digital Journal's Editor-at-Large for science news. Tim specializes in science, technology, environmental, business, and health journalism. He is additionally a practising microbiologist; and an author. He is also interested in history, politics and current affairs.

You may also like:

Business

DOGE has said nothing at all about what happens next. Guesses?

Business

A flood of presidential trade policy announcements has kept US automakers on edge since Donald Trump returned to the White House.

Sports

Packed slopes, plush turtle butt pads and 11-dollar passes: this is low-cost skiing in China.

Entertainment

Lady Gaga tribute performer Tierney chatted about her latest endeavors in the music industry.