Renting

This New England metro has one of the most competitive rental markets in the US. It’s not Greater Boston.

"The primary purpose of the Rental Market Competitiveness Report is not to show the desirability of a market, but rather how easy or challenging it is for a renter to find and secure an apartment, beyond costs."

The Bridgeport -New Haven rental market had scored 85.8 points in the RentCafe analysis. The nation's score overall was 75.8, which is considered to be quite competitive. Adobe Stock

By Sury Chakraborty

October 11, 2024

A Sept. 30 analysis by RentCafe named the Bridgeport-New Haven, Conn., area the fourth-most competitive rental market in the nation.

Greater Boston landed at No. 18 out of 137.

“The primary purpose of the Rental Market Competitiveness Report is not to show the desirability of a market, but rather how easy or challenging it is for a renter to find and secure an apartment, beyond costs,” Veronica Grecu, a research analyst at RentCafe.com and the author of the report, told Boston.com.

Grecu said that if a market is more desirable than others, metrics like the supply of new apartments, occupancy rate, and share of renters who renew their leases can strongly influence competitiveness in the market.

The apartment search website analyzed Yardi Systems apartment data across 137 rental markets in the United States, according to the methodology of the report. Yardi Matrix offers market intelligence and research or real estate. “The data comes directly from market-rate large-scale multifamily properties of at least 50 units. Fully affordable multifamily properties were excluded.”

RentCafe.com used five metrics: the number of days apartments were vacant, the percentage of occupied units, the number of prospective renters competing for an apartment, the percentage of renters who renewed their leases, and the share of new apartments.

Based on that, they calculated a Rental Competitiveness Index, or RCI ,during the busiest time of the year for moving. According to the RentCafe analysis, the national RCI score stood at 75.8, which is considered to be quite competitive.

New England’s most competitive rental markets

The Bridgeport -New Haven rental market had an RCI score of 85.8. The “metro area benefits from its proximity to the opportunities and attractions in New York City, thereby attracting professionals and intensifying competition for apartments,” the report stated.

Greater Boston had a score of 79.9. Vacant apartments stayed in the market for 37 days, the same as in Bridgeport-New Haven, and the average occupancy rate stood at 94.9 percent.

“When talking about Greater Boston, we look at a highly desirable area for renters due to its robust job market, particularly in sectors like technology, health care, education, and finance, with a low unemployment rate,” Grecu said.

She added that the presence of educational institutions such as Harvard and MIT adds to its appeal for students and academics.

The title for the hottest rental market during the peak season in 2024 was shared by two contenders: Suburban Chicago, Ill., and Miami-Dade County, Fla., tied with a score of 91.3.

Here is a list of the top 20:

Rank	Market	Competitive Score	Average Vacant Days	Occupied Apartments	Prospective Renters	Lease Renewal Rate	Share of New Units
1	Suburban Chicago, Ill.	91.3	33	95.6%	16	69.5%	0.11%
1	Miami-Dade County, Fla.	91.3	32	96.60%	18	71.50%	1.02%
3	Milwaukee	90.7	31	95.5%	14	69.6%	0.36%
4	Bridgeport – New Haven	85.8	37	95.6%	16	61.8%	0.00%
5	Chicago	85.4	31	94.7%	14	58.7%	0.52%
6	North Jersey, N.J.	85.3	37	95.7%	13	69.8%	0.38%
7	Omaha	83	32	95.2%	13	65.2%	1.15%
8	Suburban Philadelphia, Pa.	82.6	40	94.8%	10	74.8%	0.34%
9	Manhattan, N.Y.	82.2	37	95.4%	9	65.8%	0.05%
10	Brooklyn, N.Y.	82	40	96.3%	14	69.5%	0.75%
11	Grand Rapids, Mich.	80.9	35	95.3%	10	70.1%	1.13%
12	Detroit	80.6	41	93.8%	10	69.5%	0.00%
13	Baltimore	80.4	42	94.0%	10	72.3%	0.08%
14	Broward County, Fla.	80.3	38	95.1%	13	65.7%	0.92%
15	Eastern Virginia, Va.	80.1	36	94.1%	10	63.9%	0.66%
16	Orange County, Calif.	80	41	95.5%	12	63.5%	0.13%
16	Lansing – Ann Arbor, Mich.	80	38	94.2%	8	66.3%	0.16%
18	Greater Boston, Mass.	79.9	37	94.9%	13	61.7%	0.75%
19	Kansas City, Mo.	79.4	37	94.1%	9	66.9%	0.72%
20	Cincinnati	78.8	39	94.5%	11	64.2%	0.76%

Source: RentCafe.com

The report also suggested that the the Northeast was the most competitive region in the country, with an RCI score of 80.4. This is followed by the Midwest with a score of 80. The least competitive region is the Pacific Northwest with an RCI score of 70.6.

New England occupied three spots on the top 20 most competitive small rental markets, which according to RentCafe.com, comprises those with under 80,000 rental units.

Worcester-Springfield took sixth place with an RCI score of 85.1. Portland, Maine stood in the 10th position, followed by Providence in the 11th.

Here is a list of the top 20 most competitive small rental markets:

Rank	Market	Competitive Score	Average Vacant Days	Occupied Apartments	Prospective Renters	Lease Renewal Rate	Share of New Units
1	Madison, Wis.	90.3	23	96.3%	17	68.5%	1.21%
2	Fayetteville, Ark.	89.7	24	96.5%	13	72.8%	0.60%
3	Lehigh Valley, Pa.	87.4	38	96.5%	14	79.6%	0.00%
4	Little Rock, Ark.	86.5	25	95.7%	11	71.6%	0.85%
5	Harrisburg, Pa.	85.5	37	96.4%	15	74.1%	0.21%
6	Worcester – Springfield	85.1	38	96.6%	20	63.4%	0.13%
7	Knoxville, Tenn.	84.4	30	95.4%	13	67.7%	0.45%
8	Palm Beach County, Fla.	84.1	32	95.5%	15	67.7%	0.94%
9	Lafayette, Ind.	84	36	94.3%	11	75.6%	0.00%
10	Portland, Maine	83.9	26	96.7%	22	67.8%	6.82%
11	Providence	83.8	39	96.1%	18	66.1%	0.31%
12	Tulsa, Okla.	81.4	29	95.1%	9	64.0%	0.00%
13	Rochester, N.Y.	81.2	40	95.5%	11	75.3%	0.87%
14	Dayton, Ohio	80.7	35	95.1%	11	66.7%	0.48%
15	Asheville, N.C.	80.6	32	95.1%	10	66.5%	1.17%
16	El Paso	79.3	36	95.5%	13	58.8%	0.00%
17	Des Moines, Iowa	79.1	34	94.4%	12	58.8%	0.25%
18	South Bend, Ind.	79	36	94.6%	6	70.8%	0.00%
19	Jackson, Miss.	78.9	33	93.1%	8	64.3%	0.00%
20	Buffalo	78.4	41	93.7%	9	71.5%	0.00%

Source : RentCafe.com

Then and now

Little has changed in the nation’s rental market in the past year, according to the report.

Between 2023 and 2024, the factors that influence competitiveness in the peak season went through slight changes.

For the New England markets included in the top 20 ranking, here is a glimpse of the journey from 2023 to 2024.

Greater Boston saw slight changes in the key metrics:

GREATER BOSTON	2023	2024
Share of newly built apartments	0.33%	0.75%
No. of applicants per vacant unit	14	13
No. of days apartments stayed vacant	35	37
Lease renewal rate	59.2%	61.7%
Occupancy rate	95.4%	94.9%
RCI score	76.6	79.9

Source: RentCafe.com

For Bridgeport-New Haven, the differences were even more minute.

BRIDGEPORT-NEW HAVEN	2023	2024
Share of newly built apartments	0.34%	0%
No. of applicants per vacant unit	16	16
No. of days apartments stayed vacant	37	37
Lease renewal rate	63.1%	61.8%
Occupancy rate	95.9%	95.6%
RCI score	76.9	85.8

Source – RentCafe.com

“The US rental market is still feeling the effects of the recent surge in new apartments opened nationwide, with about 30 percent of the 137 markets analyzed showing signs of softening compared to last year’s peak rental season,” according to the report.