The landscape of the rental market has undergone significant transformations, creating a scenario where landlords are eager to fill their vacancies swiftly. In numerous urban areas, the quest for tenants is becoming increasingly competitive, with demand surging to unprecedented levels.
Findings from RentCafé indicate that in many metropolitan areas, landlords struggle to keep pace with the overwhelming demand for rental properties. In fact, some locations are filling up so rapidly that construction cannot keep up with the influx of prospective tenants seeking housing.
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High demand in major cities
In South Florida, reports of sluggish home sales have intensified competition among renters, with Miami emerging as one of the most sought-after rental markets, closely followed by Chicago. However, the reasons behind the heightened demand differ significantly between these two cities.
Historically, high mortgage rates have discouraged many potential buyers, consequently driving them toward rental properties. This trend is particularly pronounced in expensive areas like Miami, where the warm climate, absence of a state income tax, and a plethora of amenities significantly boost its appeal. According to data from RentCafé, Florida has been recognized as the top region for apartment seekers as summer approaches.
Fast-moving rental cycles
The rapid turnover of apartments in Miami is noteworthy; units are typically leased within just 32 days, with an astonishing ratio of 19 prospective tenants vying for each available apartment. This limited availability has led to a remarkable 71.8% of renters opting to renew their leases, resulting in a soaring occupancy rate of 96.5%.
In Chicago, the situation is somewhat different. The city has a long-standing history of zoning regulations that restrict the type of housing available, particularly in suburban areas like Aurora and Naperville, where single-family homes dominate. Consequently, around 60% of tenants have chosen to renew their leases, leading to an occupancy rate of 95.4%. Each apartment attracts about 16 interested renters, with an average fill time of 29 days.
Lease renewals and tenant retention
Renewal rates play a crucial role in sustaining demand in this competitive environment. As the 2025 leasing season approaches, national renewal rates have climbed to 62.7%, indicating a slight increase from the previous year, as outlined in the RentCafé survey. Retaining reliable tenants not only benefits landlords but also minimizes costs associated with tenant turnover.
Replacing a tenant can incur significant expenses, including painting and refurbishing the unit, marketing for new tenants, and the potential loss of rental income. Consequently, landlords are motivated to maintain good relationships with existing tenants. The 2025 Resident Experience Management Report from Zegos indicates that the average retention rate for multifamily properties has reached 63%, the highest since monitoring began in 2021.
Housing shortages in key markets
In areas like the Twin Cities of Minneapolis and St. Paul, a housing shortage has become apparent, as noted in the Minnesota Realtors’ March 2025 Housing Market Report. The issues stem from strict zoning regulations and public opposition to new developments, commonly referred to as NIMBYism. Minneapolis, in particular, ranks lowest among 128 Midwest cities for new housing construction.
The consequences of this stagnation have been substantial, with rental prices rising nearly $200 per month from 2019 to 2025. In fact, rental costs for non-subsidized apartments now exceed the average mortgage payment for single-family homes.
Emerging rental hot spots
Findings from RentCafé indicate that in many metropolitan areas, landlords struggle to keep pace with the overwhelming demand for rental properties. In fact, some locations are filling up so rapidly that construction cannot keep up with the influx of prospective tenants seeking housing.0
Findings from RentCafé indicate that in many metropolitan areas, landlords struggle to keep pace with the overwhelming demand for rental properties. In fact, some locations are filling up so rapidly that construction cannot keep up with the influx of prospective tenants seeking housing.1
Opportunities in tertiary markets
Findings from RentCafé indicate that in many metropolitan areas, landlords struggle to keep pace with the overwhelming demand for rental properties. In fact, some locations are filling up so rapidly that construction cannot keep up with the influx of prospective tenants seeking housing.2
Findings from RentCafé indicate that in many metropolitan areas, landlords struggle to keep pace with the overwhelming demand for rental properties. In fact, some locations are filling up so rapidly that construction cannot keep up with the influx of prospective tenants seeking housing.3
