DS News

DS News Jan 2023

DSNews delivers stories, ideas, links, companies, people, events, and videos impacting the mortgage default servicing industry.

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Page 77 of 83

76 76 INVESTMENT GOVERNMENT PROPERTY PRESERVATION Journal STUDY: MIAMI IS AMERICA'S MOST COMPETITIVE RENTAL MARKET According to a new study from RentCafe, an estimated 44 million American households live in rental homes, as renting remains at its highest level in half a century. For some renters, finding a new residence was difficult in 2022— especially in the South Florida area. In the last two years, looser regulations and the widespread adoption of remote working attracted even more people to settle in the Sunshine State. As a result, newcomers found themselves competing with those who were already hunting for apartments in the area, with Miami-Dade ranking as the hottest area for renting in the United States. RentCafe.com analyzed the 135 largest markets in the U.S., looking at five important metrics that affect a location's competitivity: • Number of days apartments were vacant • What percentage of rentals were occupied • Number of prospective renters competing for an apartment • What percentage of renters renewed their leases • Share of apartments completed this year en based on these metrics, we calculated a Rental Competitivity Index (RCI), which shows how competitive the rental market was this year. e national RCI score was 59.9 in 2022. Two-thirds of renters renewed leases this year. At the national level, vacant apartments were occupied within 32 days, on average and as many as 14 prospective renters competed to secure a lease for a rental apartment. To further complicate matters—and with homeownership out of reach for many aspiring homebuyers, on top of rapid inflation—renters are increasingly choosing to renew their leases. Almost two-thirds of renters nationwide chose to renew their leases this year instead of moving into a new place or taking the leap to homeown- ership in a market that's still hindered by record home prices and surging interest rates. With 95.3% of apartments already occu- pied, finding a new rental was no easy feat this year—especially because newly built units only represented 1.5% of the nation's total housing supply. New apartments also opened faster in Florida's largest metros than anywhere else in the United States this year. Even so, this was still not enough to keep up with soaring demand in an already popular area. e most competitive rental markets in 2022 scored over 100 out of 130. Miami was by far the hottest rental market in the U.S., due to record-high occupancy and high lease renewal rates. Here, a combination of factors—including the lack of state income tax, business-friendly climate, and booming tech scene—attracted droves of millennials and even Gen Zers looking to work and live in the Sunshine State. With almost all apartments in Miami occupied, those looking for a rental here found themselves in a very tight spot, especially as 75% of apartment dwellers chose to stay put this year. As a result, on average, a record 32 renters competed for a vacant apartment in Miami, and rental units were filled in 25 days. Although the number of apartments in the metro increased by a staggering 2.8% in the first part of the year (a record growth among the top 20 cities in our ranking), that's still far from meeting the high demand for rentals. e second most competitive rental market this year was Grand Rapids, Michigan, with an RCI of 112.6. is thriving yet laid-back loca- tion in western Michigan continued to attract

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