Every landlord longs to fill their rental units quickly. In many cities, finding tenants is the least of a landlord’s problems.
According to a recent report from RentCafé, landlords are struggling to keep up with demand for their dwellings as competition among tenants for vacant units has reached new highs. Some rental markets are filling up so quickly that developers cannot build housing fast enough.
Recent headlines about dismal home sales in South Florida have led to increased competition for housing among tenants, with Miami being RentCafé’s hottest rental market, followed by Chicago. However, demand for rentals in the Magic City and Windy City is for different reasons.
Why Rental Demand Is So Intense
Affordability and high mortgage rates
This is hardly a new narrative. High mortgage rates have directly influenced new homeownership and increased the demand for rentals.
This is particularly true in pricey housing markets such as Miami. Miami’s broad-based demand is driven partly by its climate, lack of Florida state income tax, and amenities. RentCafé data showed that Florida was the most in-demand region for apartment seekers at the start of the summer moving season.
Additionally, Miami attracted corporations, startups, and affluent tenants, causing apartments to be filled in just 32 days. There were 19 renters for each available unit, more than twice the national average. The limited supply resulted in 71.8% of renters renewing their leases, which pushed occupancy up to 96.5%.
Supply cannot keep up
Every real estate market is about supply and demand, but in Chicago, which has a history of rezoning, keeping its suburbs, such as Aurora, Naperville, Joliet, and Elgin, reserved for predominantly…