Renting is as good an option as owning a home, especially for those who don’t intend to stay in one place forever. But, what are the hottest rental markets in 2022?
The State of Competitive Rental Markets in 2022
The United States is home to more than 43 million renters. And, for a lot of people, renting offers more benefits than buying. It is a more attractive option for those who don’t want to live in a particular area long-term. It is also better for those who prefer to have someone else worry about repairs and maintenance.
Renters, though, have to do a fair amount of research beforehand to get good deals and have a better idea of what they’re getting into. Here is an analysis of the most buzzing rental markets in 2022.
Hottest Rental Market: Florida
Florida has come out on top this year with the hottest rental market. Miami-Dade County, Orlando, and Southwest Florida, in particular, are the places to be. This comes as no surprise considering the quality of life Florida offers. The state offers tropical climates, gorgeous beaches, and a vibrant arts and culture scene. Additionally, the Sunshine State boasts low taxes and many excellent job opportunities.
But, this rise to the top did not come suddenly for Florida. It began during the COVID-19 pandemic, with many now flocking to the state in search of sunshine and more relaxed restrictions. Also, as remote work becomes the new norm for a lot of businesses, people are more drawn to working with a view. And it is worth noting that most of the renters in Florida are not retirees, as one would normally expect, but working-age individuals.
The housing supply in Florida, though, is struggling to keep up with the influx of demand. Although it takes about 30 days to fill a vacancy, as many as 22 renters simultaneously compete for a single space on average. Current residents also don’t want to move just yet, making it even more difficult for new residents to find a place to call home.
Coming at a Close Second: The Northeast
The COVID-19 pandemic forced most people to stay at home and work remotely. With this, people started to feel the need for more living space, wanting to have a separate home office for more focused and productive results. As remote work continues for many, the demand for large and affordable units is swelling. This has driven renters to seek out spaces in the Northeast.
North Jersey, in particular, has seen a rise in new renters, with a 97.1% occupancy rate. An apartment in North Jersey takes an average of 35 days to fill and an average of 20 renters vie for the same place. A majority of these renters hail from overcrowded cities, such as nearby New York City, in search of something that offers more room for their buck. More specifically, Jersey City, Newark, Hoboken, Englewood, and Paramus are welcoming more Millennial renters.
Outside of North Jersey, places like Philadelphia, Rochester, and Central Jersey are also heating up. These areas offer great job opportunities and an easy commute on top of larger living spaces that fit the budget.
A Booming Midwestern Rental Market
The rental market is flourishing across the entire country, and the Midwestern region is no exception. Some cities with more competitive rental markets include suburban Chicago, Omaha, Grand Rapids, and Milwaukee.
Grand Rapids offers affordable housing, making it an attractive space for renters. The city has seen an influx of people moving back from larger cities in California and Texas. It also helps that the economy in Grand Rapids is prospering, so it is teeming with job opportunities. In fact, the unemployment rate in this Michigan city is well below the national average.
Of course, with a hot rental market, renters should expect more difficulty in securing an apartment in Grand Rapids. This year has not seen many new units developed in the city, and there are virtually no vacancies as of late. It only takes an average of 32 days to fill an apartment, with as many as 18 renters simultaneously competing for the same spot.
Orange County Reigns on the West Coast
On the West Coast, California is known for its competitive rental market. But, Orange County remains the hottest in the state, as renters from Los Angeles and other nearby cities move to find cheaper living spaces. Additionally, when compared to its counterparts, Orange County offers a more slow-paced lifestyle — perfect for those who are sick of the hustle and bustle of city life — without sacrificing economic development.
After Orange County, the rental markets in Central and Southern California are gaining traction, too. These areas are home to many online and warehousing businesses, contributing to its increased prosperity. Renters in search of more affordable housing are also moving inland from coastal areas, which offer better views but for a significantly higher price.
Why People Are Renting Instead of Buying
The rental market is red hot right now, mainly because more people are choosing to rent instead of buying homes. Renting provides more flexibility and allows tenants to test the waters first before committing to a place long-term. But, other than personal reasons, renting is simply more affordable than buying in the current landscape.
With inflation and mortgage rates going up, it makes more financial sense to rent. Even if someone wanted to buy a house, it is simply a seller’s market right now. As the cost of materials and labor spike, sellers are more inclined to seek a higher asking price. Plus, the housing supply is lagging behind, making it an even more competitive market.
The Future of the Rental Markets 2022
Some renters might feel the need to wait out the current boom in the rental market. But, experts predict that the rental markets will remain competitive for quite a while. Renters will likely continue to feel the effects of the shortage in housing supply coupled with the aftermath of the COVID-19 pandemic.
Managing a rental property is not as easy as it seems. With a large renter population, it can be difficult to weed through so many applicants without professional help. Start looking for the best rental management company in your area using our online directory!
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