Competition is heating up in the US rental market

Renting an apartment is becoming even more difficult across the country heading into Spring 2025, according to a new report from rental search site RentCafe that puts into numbers what avid Zillow users already know.

The current situation: Last year, developers completed nearly 600,000 new multifamily units, per US Census data. It marked a 34% year-over-year increase and the highest annual level since 1974, with major cities like New York City, Dallas, and Austin seeing the most new rentals.

But despite the historic influx in supply, rental competitiveness has actually increased to start 2025, according to RentCafe.

• That’s in large part because a growing number of renters aren’t moving from their current digs, as elevated mortgage rates and prices keep many Americans from entering the housing market.

Where roofs are on fire: The Midwest ranks as the #1 overall US region in terms of rental competitiveness – hosting 10 of America’s top-20 hottest rental markets – while the Pacific Northwest is the least competitive region.

In terms of individual areas, RentCafe found the hottest markets are:

1. Miami
2. Suburban Chicago
3. North Jersey
4. Lansing-Ann Arbor, MI
5. (Tied) Suburban Philadelphia and Grand Rapids, MI

🏘️ Zoom out: Apartment rents nationwide rose by 0.3% last month, marking the first increase after six consecutive months of declines. Overall, the median US rental price in February ($1,375/month) was 0.4% below the same point last year.