Renting in 2023 in Numbers: 9 People Competed for a Vacant Apartment, While 60% of Renters Stayed Put — Year-End Report
New York City’s numbers diverged from the national averages in several significant ways:
In New York City, the rental market presented in the past year has its own unique dynamics when compared to national averages. The city’s apartments remained vacant for an average of 40 days, slightly longer than the national average of 38 days.
Occupancy rates in New York were high, but were still slightly below the national figure, with 93.80% of apartments occupied compared to 94% nationwide.
The competition for apartments was less intense in New York, with only 6 prospective renters per unit, in contrast to the national average of 9.
Interestingly, the lease renewal rate in New York was 63.20%, indicating that a significant portion of tenants chose to stay in their current apartments. This rate was somewhat reflective of the national trend, where the majority of renters opted for lease renewals.
However, New York lagged behind the national trend in terms of new housing development, adding only 0.60% more units to its apartment stock, considerably less than the nearly 1.89% increase seen across the country.
We don’t have enough data for Staten Island to generate relevant results, but here’s an average for the whole NYC:
Image Credit – RentCafe
As 2023 is drawing to a close, here’s how the rental market looked like this year, in nationwide numbers: 9 renters competed for each vacant apartment amid very limited options, as 94% of rentals were occupied. Typically, apartments stayed empty for 38 days before welcoming new tenants and the majority of renters chose to renew their leases. At the same time, the nation’s supply of apartments saw a solid growth, increasing by almost 1.89%.
These figures show a more stable market for renters compared to 2022, when the occupancy rate was slightly tighter at 95%, and vacant apartments were filled 6 days faster, with as many as 14 renters competing for each vacant apartment.
However, finding a place in certain markets was no walk in the park for renters: Miami and New Jersey were neck and neck for the title of “Most Competitive Rental Market” in 2023. At the same time, rental competitiveness in coveted hubs like Manhattan and Silicon Valley grew steadily — so much so that these two markets entered the top 30 this year.
Here are the main highlights of our Year-End Report, which looks at the most competitive markets of 2023:
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In 2023, sought-after places like Manhattan, Silicon Valley, and Los Angeles have re-emerged as competitive rental markets, following a comparatively calm 2022. For instance, Manhattan saw a 1% rise in occupancy rates this year, from 95% to 96%, indicating a shortage of available apartments. With a mere 0.16% increase in hew apartments (versus the 1.38% increase in 2022), each vacant apartment saw 9 renters competing for it.
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Miami was the hottest rental market in the U.S. in 2023, just like in 2022. Even with a 3.7% increase in the number of Miami’s rental apartments since January, the demand still outpaced the available supply. With 71.2% of renters renewing their leases, finding available units was challenging throughout the metro. Consequently, each vacant rental saw 22 applicants vying for it, more than double the national average, and apartments were often snapped up within a month.
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North Jersey was the second most competitive U.S. rental market, despite starting the year at the top. With an occupancy rate of 96.3% and 70.5% of renters renewing their leases, apartment seekers faced fierce competition here. The 1.98% uptick in new apartments was not enough to meet demand in this tight market, where vacancies filled as fast as 34 days, with 14 applicants competing for each unit.
- Silicon Valley attracted more and more renters in 2023, while other (remote) work hubs cooled down. Available apartments in Silicon Valley rented as quickly as 33 days — among the fastest in the nation — with more options to choose from after a 1.71% increase in supply. Plus, with lease renewals significantly below the national average (at 47.9%, to be exact) and an occupancy rate of 95.5%, each vacant apartment in Silicon Valley attracted 12 prospective renters.
- Eastern Los Angeles is another newcomer in the top 30 most competitive rental markets in 2023, with the second-largest number of prospective renters after Miami – 18. Even with a solid growth in the number of apartments (1.93% new units built since January), the occupancy rate stood at 96.3%. However, with more options for modern apartments, less than half of renters chose to renew their leases (44.8%).
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The Midwest emerged as the hottest region for renting in 2023, boasting 10 entries in our ranking of the top 30 most competitive markets.
To read the full report, with additional graphics for specific segments of the country, please visit RentCafe’s report
Banner Image: NYC Skyline. Image Credit – Patrick Tomasso
