{"id":184953,"date":"2025-09-29T13:12:32","date_gmt":"2025-09-29T19:12:32","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=184953"},"modified":"2025-09-29T13:12:34","modified_gmt":"2025-09-29T19:12:34","slug":"housing-markets-where-properties-are-being-rented-out-the-fastest-sept-2025","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/housing-markets-where-properties-are-being-rented-out-the-fastest-sept-2025","title":{"rendered":"The Housing Markets Where Properties Are Being Rented Out the Fastest"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Every landlord longs to fill their rental units quickly. In many cities, finding tenants is the least of a landlord&#8217;s problems.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">According to a recent report from <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.rentcafe.com\/blog\/rental-market\/rental-competitiveness-index\/us-hottest-rental-markets\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">RentCaf\u00e9<\/span><\/a><span data-preserver-spaces=\"true\">, 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.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Recent headlines about<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/nypost.com\/2025\/06\/26\/real-estate\/south-floridas-residential-market-is-in-a-months-long-slump\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\"> dismal home sales<\/span><\/a><span data-preserver-spaces=\"true\"> in South Florida have led to increased competition for housing among tenants, with Miami being RentCaf\u00e9&#8217;s hottest rental market, followed by Chicago. <\/span><span data-preserver-spaces=\"true\">However, demand for rentals in the Magic City and Windy City is <\/span><span data-preserver-spaces=\"true\">for<\/span><span data-preserver-spaces=\"true\"> different reasons.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Why Rental Demand Is So Intense<\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Affordability and high mortgage rates<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">This<\/span><span data-preserver-spaces=\"true\"> is hardly a new narrative. High mortgage rates have directly influenced new homeownership and increased the demand for rentals.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">This<\/span><span data-preserver-spaces=\"true\"> is particularly true in pricey housing markets such as Miami. <\/span><span data-preserver-spaces=\"true\">Miami&#8217;s broad-based demand is driven partly by its climate, <\/span><span data-preserver-spaces=\"true\">lack<\/span><span data-preserver-spaces=\"true\"> of Florida state income tax, and amenities.<\/span><span data-preserver-spaces=\"true\"> RentCaf\u00e9 data showed that Florida was the most in-demand region for apartment seekers at the start of the summer moving season.<\/span><\/p>\n\n\n<p><iframe title=\"Rental Competitiveness Score by Region Peak Season 2025\" aria-label=\"Choropleth map\" id=\"datawrapper-chart-oqDju\" src=\"https:\/\/datawrapper.dwcdn.net\/oqDju\/7\/\" scrolling=\"no\" frameborder=\"0\" style=\"width: 0; min-width: 100% !important; border: none;\" height=\"536\" data-external=\"1\"><\/iframe><script type=\"text\/javascript\">!function(){\"use strict\";window.addEventListener(\"message\",function(a){if(void 0!==a.data[\"datawrapper-height\"]){var e=document.querySelectorAll(\"iframe\");for(var t in a.data[\"datawrapper-height\"])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data[\"datawrapper-height\"][t]+\"px\";r.style.height=d}}})}();<\/script><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Additionally, Miami attracted corporations, startups, and affluent tenants, <\/span><span data-preserver-spaces=\"true\">causing apartments to <\/span><span data-preserver-spaces=\"true\">be<\/span><span data-preserver-spaces=\"true\"> filled<\/span><span data-preserver-spaces=\"true\"> 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%.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Supply cannot keep <\/span><span data-preserver-spaces=\"true\">up<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Every real estate market is about supply and demand, but in Chicago, which has a<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.strongtowns.org\/journal\/2025-6-12-legalize-4-units-chicago\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\"> history of rezoning<\/span><\/a><span data-preserver-spaces=\"true\">, keeping its suburbs, such as Aurora, Naperville, Joliet, and Elgin, reserved for predominantly single-family homes, finding rental accommodation here is tough.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Thus, 60% of current tenants chose to renew their leases at the start of the moving season, resulting in an occupancy rate of 95.4%. Each apartment attracted 16 potential renters, filling them in an average of 29 days.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Lease renewals are congesting <\/span><span data-preserver-spaces=\"true\">turnover<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Lease renewals played a <\/span><span data-preserver-spaces=\"true\">major<\/span><span data-preserver-spaces=\"true\"> role in fueling demand. At the start of the 2025 leasing season, national renewal rates climbed to 62.7%, up from 62% the previous year, according to the RentCaf\u00e9 survey.&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Profit margin pressure pushes landlords to compete for stable <\/span><span data-preserver-spaces=\"true\">tenants<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">It&#8217;s cheaper to keep her (and him).<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.multifamilydive.com\/news\/turnover-costs-4000-apartment-multifamily\/696298\/?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\"> The cost of replacing a tenant<\/span><\/a><span data-preserver-spaces=\"true\">, including painting and updating an apartment, marketing, and lost rent, can be substantial, even when a rent increase <\/span><span data-preserver-spaces=\"true\">is factored in<\/span><span data-preserver-spaces=\"true\">. That&#8217;s why landlords <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/how-to-retain-tenants\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">push to keep reliable tenants<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">According to<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.gozego.com\/publications-media\/state-of-resident-experience-management\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\"> Zegos&#8217; 2025 Resident Experience Management Report<\/span><\/a><span data-preserver-spaces=\"true\">, the average resident retention rate for multifamily companies is 63%\u2014the highest since tracking began in 2021. The number of property management firms targeting retention rates of 70% or higher has more than tripled in the past four years.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Other National Rental Hot Spots<\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Minneapolis, MN<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">The Twin Cities of Minneapolis and St. Paul don&#8217;t have enough housing to go around, according to the<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.mnrealtor.com\/blogs\/mnr-news1\/2025\/04\/15\/march-2025-housing-market-report\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\"> Minnesota Realtors March 2025 Housing Market Report<\/span><\/a><span data-preserver-spaces=\"true\">. <\/span><span data-preserver-spaces=\"true\">Zoning regulations and citizen input<\/span><span data-preserver-spaces=\"true\"> (<\/span><span data-preserver-spaces=\"true\">commonly known as NIMBYs<\/span><span data-preserver-spaces=\"true\">, <\/span><span data-preserver-spaces=\"true\">or<\/span><span data-preserver-spaces=\"true\"> Not In My Backyard) are <\/span><span data-preserver-spaces=\"true\">being blamed<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Minneapolis <\/span><span data-preserver-spaces=\"true\">is<\/span><span data-preserver-spaces=\"true\"> the lowest <\/span><span data-preserver-spaces=\"true\">out of<\/span><span data-preserver-spaces=\"true\"> 128 Midwest cities in new housing development, according to <\/span><span data-preserver-spaces=\"true\">the<\/span> <em><a class=\"editor-rtfLink\" href=\"https:\/\/www.minnpost.com\/cityscape\/2025\/01\/housing-construction-in-minneapolis-and-st-paul-is-tanking-as-new-year-begins\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">MinnPost<\/span><\/a><\/em><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\"> The result has been a rental increase from 2019 to 2025, by almost $200 a month, with rents for unsubsidized apartments now more expensive than the mortgage payment on an average single-family home.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Milwaukee, WI<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Dubbed &#8220;One of America&#8217;s Most Cutthroat Rental Markets&#8221; by <\/span><em><span data-preserver-spaces=\"true\">The<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.wsj.com\/real-estate\/luxury-homes\/milwaukee-rental-market-b0fe4ba4?st\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\"> Wall Street Journal<\/span><\/a><\/em><span data-preserver-spaces=\"true\">, Wisconsin&#8217;s largest city is experiencing extreme rental demand due to <\/span><span data-preserver-spaces=\"true\">slow<\/span><span data-preserver-spaces=\"true\"> development.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">&#8220;The lack of new supply is what&#8217;s making Milwaukee a hot rental market,&#8221; Chad Venne, the real estate program director at the University of Wisconsin-Milwaukee, told the <\/span><em><span data-preserver-spaces=\"true\">Journal<\/span><\/em><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Brooklyn, NY<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">NYC rents surged at the start of 2025, according to commercial real estate website<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.globest.com\/2025\/04\/23\/manhattan-and-brooklyn-lead-the-way-in-rising-nyc-rents\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\"> Globe St.<\/span><\/a><span data-preserver-spaces=\"true\"> The city&#8217;s ever-fashionable borough of Brooklyn was in high demand, experiencing a 1.4% year-over-year rental increase in September, according to<\/span> <a class=\"editor-rtfLink\" href=\"https:\/\/www.apartments.com\/rent-market-trends\/brooklyn-ny\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Apartments.com<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a class=\"editor-rtfLink\" href=\"https:\/\/www.redfin.com\/news\/hottest-neighborhoods-2025\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Redfin&#8217;s Hottest Neighborhoods of 2025<\/span><\/a><span data-preserver-spaces=\"true\"> saw the ZIP code 11238, encompassing Prospect Heights and Clinton Hill in Brooklyn, earn its coveted top spot due to year-over-year growth.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">&#8220;Many companies now require workers to be in the office at least two to three days a <\/span><span data-preserver-spaces=\"true\">week\u2014<\/span><span data-preserver-spaces=\"true\">so people are coming back. In my opinion, Brooklyn has become even more popular than Manhattan,&#8221; said Redfin Premier agent Ian Rubinstein in the company\u2019s press release.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Rochester, NY<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Apartment Advisor surveyed its list of<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/partners.apartmentadvisor.com\/owner-resource-center\/most-competitive-rental-markets?\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\"> the most competitive rental hot spots<\/span><\/a><span data-preserver-spaces=\"true\">, with Rochester, New York, coming out on top. It attracts priced-out renters from other cities and remote and hybrid workers looking to maximize their rental dollars. Rents increased by 14% over the last year, as the city experiences a housing shortage, with a projected 24,000 new apartments needed by 2040.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Other cities featured in Apartment Advisor&#8217;s survey of high-demand metros include:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">Allentown-Bethlehem-Easton, PA-NJ\u00a0<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Riverside-San Bernardino-Ontario, CA<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Baltimore-Columbia-Towson, MD<\/span><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Final Thoughts<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Prospective new landlords might have a tough time finding rentals in high-demand markets such as Miami and the Chicago suburbs<\/span><span data-preserver-spaces=\"true\">, but tertiary<\/span><span data-preserver-spaces=\"true\"> markets surrounding these cities could provide good opportunities.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">The U.S. housing market is not monolithic and liable to change. Monitor new business development (<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.npr.org\/2025\/08\/17\/nx-s1-5461467\/ai-is-driving-a-data-center-boom-in-rural-america-locals-are-divided-on-the-benefits\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">data center construction is transforming many rural areas<\/span><\/a><span data-preserver-spaces=\"true\">),<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.npr.org\/2024\/02\/17\/1229867031\/housing-shortage-zoning-reform-cities\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\"> changing zoning laws<\/span><\/a><span data-preserver-spaces=\"true\">, housing initiatives, and new transportation development for investment opportunities. <\/span><span data-preserver-spaces=\"true\">Equally<\/span><span data-preserver-spaces=\"true\">, finding single-family rentals in suburban areas within commuting distance <\/span><span data-preserver-spaces=\"true\">might<\/span><span data-preserver-spaces=\"true\"> offer greater availability, fewer regulations, and <\/span><span data-preserver-spaces=\"true\">less<\/span><span data-preserver-spaces=\"true\"> tenant <\/span><span data-preserver-spaces=\"true\">churn<\/span><span data-preserver-spaces=\"true\"> than <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/finding-multifamily-properties\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">multifamily<\/span><\/a><span data-preserver-spaces=\"true\"> housing.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Smart strategizing also plays a crucial role in running a profitable rental business, and it doesn&#8217;t always mean jacking up rents at every opportunity, as many larger complexes do. As it can cost<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/forums\/48\/topics\/1079651-how-much-does-it-cost-y-all-for-turns-between-tenants\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\"> around $5,000<\/span><\/a><span data-preserver-spaces=\"true\"> for many landlords to replace a new tenant, maximizing retention is imperative.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Despite record construction in some areas, the U.S. still has a<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.wsj.com\/finance\/how-severe-is-the-housing-shortage-it-depends-on-how-you-define-shortage-89cdbee7\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\"> chronic housing shortage<\/span><\/a><span data-preserver-spaces=\"true\">, which is fueling the housing crisis. For landlords willing to scrutinize each market and strategize well, continued opportunities await.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Every landlord longs to fill their rental units quickly. In many cities, finding tenants is the least of a landlord&#8217;s problems. According to a recent report from RentCaf\u00e9, landlords are [&hellip;]<\/p>\n","protected":false},"author":613725,"featured_media":184225,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8],"tags":[],"class_list":["post-184953","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-trends"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/184953","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613725"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=184953"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/184953\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/184225"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=184953"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=184953"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=184953"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}