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By Christine Serlin
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While the nation has seen an influx of new multifamily supply in the past year, surging lease renewal rates are keeping the market very competitive for prospective renters. According to RentCafe’s latest Rental Market Competitiveness Report, the lease renewal rate hit 63.1% at the beginning of 2025, up from 61.5% a year ago.

On a national level, the Rental Competitiveness Index (RCI) score increased to 75.7, indicating a more competitive market than a year ago.

RentCafe analyzed the nation’s 139 largest markets at the start of the year, looking at five metrics that impact a location’s competitivity, including occupancy rate; vacant days; prospective renters per vacant unit; renewal lease rate; and the share of new apartments.
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Just like a year ago, each available apartments attracts an average of seven applicants. But this year, units are staying on the market for 43 days, two days longer than the same period in 2024.

Claiming 10 of the top 20 rental markets, the Midwest has emerged as the most competitive region for renters with the highest RCI score at 79.5 at the start of the year. The Northeast, with an RCI score of 79, ranks second, followed closely by Florida at 78.9.

With an RCI score of 93.1, exceeding the national average by 17.4 points, Miami holds on to the top spot for markets, with a 96.3% occupancy and 14 renters competing for each available unit. In addition, 76% of Miami renters renewed their leases, up from 73.4% in the first months of 2024.

Suburban Chicago comes in second, with an RCI score of 88.4. The market, which is known for affordability, a strong job market, and access to public transit, boasts a 95.4% occupancy rate and 70.4% lease renewals.

Rounding out the top five competitive markets are Northern New Jersey, with an RCI score of 85.7; Michigan’s Lansing-Ann Arbor, with an RCI score of 85.4; and suburban Philadelphia and Grand Rapids, Michigan, tied with RCI scores of 85.3.

Year over year, several California markets have become more competitive. The Inland Empire, ranked No. 36, is the fastest-rising market, increasing its RCI score by 9.5 points to 75.5. The spike is fueled by a 4.1% increase in lease renewals amid a modest, 0.63% growth in the supply of housing. According to RentCafe, the spike is attributed to a 4.1% increase in lease renewals amid a modest .63% growth in new housing supply.

Fayetteville, Arkansas, takes the top spot for small markets at the start of 2025, with an RCI score of 91.7, up 3.6 points year over year. Vacant units are only on the market for an average of 22 days, the fastest turnaround in the nation. With rental supply only growing by a modest 0.49% recently and 75.4% of renters choosing to renew their leases, this leaves only 3% of units available for prospective renters. Each vacancy attracts an average of nine applicants, up from six a year ago.

About the Author
Christine Serlin is an editor for Affordable Housing Finance, Multifamily Executive, and Builder. She has covered the affordable housing industry since 2001. Before that, she worked at several daily newspapers, including the Contra Costa Times and the Pittsburgh Tribune-Review. Connect with Christine at cserlin@zondahome.com or follow her on X/Twitter @ChristineSerlin.