Lease Café has launched its 2022 year-end report, which seems to be on the best rental markets this yr.
Though house development is at a historic excessive, discovering a rental in 2022 has been difficult. Nationally, the common renter needed to compete with 14 different house seekers to safe a rental, which didn’t keep listed longer than one month.
With greater than two-thirds of renters renewing their leases and a mean occupancy price of greater than 95%, this yr’s rental market was aggressive, regardless of the autumn slowdown. And with demand climbing up in nearly each metropolitan space, renters had the toughest time discovering an house in Miami, Orlando, Grand Rapids and North Jersey.
Listed here are some highlights from the report:
Miami-Dade, Florida, was the most popular rental market in 2022, as a result of a excessive occupancy price of 97.5% and a staggering 75% of renters deciding to remain put and renew their leases. As a consequence, regardless of the realm’s provide of residences rising by 2.8% in 2022 in comparison with the earlier yr, a report 32 renters competed for one vacant house, which acquired snatched in 25 days, on common.
In reality, Florida was this yr’s renting hotspot: 5 of the nation’s hottest locations to lease have been within the Sunshine State, with Orlando being the third best rental market nationwide, adopted by Southwest Florida, Broward County and Tampa.
Residence looking intensified within the Midwest, particularly in areas with gradual development like Grand Rapids, Milwaukee, Omaha and Lansing – Ann Arbor, all of which proceed to draw younger professionals from pricier metros throughout the nation.
Regardless of a modest 0.8% uptick in provide, renters in Grand Rapids confronted the second hardest market this yr: a minimum of 18 individuals competed for a vacant house, which acquired stuffed in 28 days. In the meantime, Grand Rapids’ occupancy topped at nearly 97%, prompting round 70% of renters to resume their leases as a substitute of in search of a brand new place.
The Northeast continued to lure distant employees in search of further area and higher offers — a lot in order that seven northeastern markets have been among the many 20 hottest. Harrisburg, the place nearly no new residences have been added this yr, emerged because the regional chief, rating 4th nationwide for competitivity. This was primarily as a result of its decrease price of residing in comparison with lots of the bigger metro areas within the Northeast, in addition to its family-friendly group and proximity to the nice outdoor. One other benefit to residing in Harrisburg is its relative proximity to Philadelphia, Pittsburgh and Baltimore.
Central Jersey was twice extra aggressive than Manhattan this yr. The realm had the very best lease renewal price within the nation (85%) and a mean occupancy price near 97% (all of the whereas its provide of residences elevated by a mere 0.9%). That stated, discovering an house for lease was fairly difficult for most individuals within the space, as 15 renters competed for an house, on common. North Jersey renters have been in an analogous state of affairs, regardless of a rise of two.1% in residences.
On the West Coast, California’s low-supply Orange County was the most popular renting spot, adopted by San Diego, each of which continued to draw renters from Los Angeles and San Francisco. In reality, Orange County and San Diego have been the one California markets to succeed in our prime 20 this yr.
Orange County was the eighth best rental market nationwide. The low enhance in provide (0.6%) didn’t accommodate house seekers, largely e-commerce employees, in search of leases in a metropolis the place lower than 3% of the residences have been vacant. Equally, a mean of twenty-two renters competed for a vacant house in San Diego, which ranked thirteenth nationwide.
Though massive metros have a tendency to supply extra jobs and better salaries, that doesn’t imply that smaller areas can’t be simply as aggressive in their very own proper— and Fayetteville, Arkansas is the right instance. With a record-high occupancy of 98.3% and greater than three-quarters of house dwellers opting to remain put this yr, renters right here had a particularly powerful time discovering an house for lease in Fayetteville. On common, it took slightly below two weeks for a vacant unit in Fayetteville to turn into occupied this yr, with an astounding 28 potential renters competing for one house.
Right here, massive employers just like the College of Arkansas and Walmart, which is headquartered in close by Bentonville, present loads of alternatives for each locals and newcomers. On prime of that, the town is nestled within the Ozark Mountains, thereby making it an incredible place to dwell for nature lovers.
The second best small market was Lehigh Valley, Pennsylvania, the place plenty of distant employees fleeing tighter restrictions in Philadelphia, New York Metropolis and New Jersey in the course of the pandemic discovered bigger residences that higher match their budgets. On the identical time, surging dwelling costs compelled many potential consumers to maintain renting till they might resume their house-hunting. Consequently, greater than 80% of the individuals residing in rental residences in Lehigh Valley selected to remain in place this yr.
Equally, the increasing work-from-home pattern led hundreds of Boston, Manhattan and Washington, D.C, residents to rethink their housing choices within the final two years. Lots of them selected to relocate to peaceable Portland, Maine, in the hunt for a slower tempo of life inside attain of breathtaking surroundings. This prompted the common rental in Portland to be stuffed after 26 days, with a report 68 potential renters competing for each vacant house this yr. After all, in all honesty, Bostonians have all the time had a gentle spot for this charming nook of New England.
Different small markets that have been extremely aggressive in 2022 included Lafayette, Indiana, Asheville, North Carolina, Madison, Wisconsin, Tulsa, Oklahoma, Windfall, Rhode Island, Knoxville, Tennessee, North Central Florida, Little Rock, Arkansas, Columbus, Georgia, Fort Wayne, Indiana, Chattanooga, Tennessee, Wichita, Kansas, Albany, New York, South Bend, Indiana, Fayetteville, North Carolina and Albuquerque, New Mexico.