Even with an influx of new apartment supply this year, competition was fierce in the majority of markets RentCafe analyzed in its Year-End Rental Competitiveness Report.
RentCafe analyzed the nation’s 137 largest markets for the first three quarters of 2025, 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.
On the national level, the Rental Competitivity Index (RCI) score is 75.2 out of 100, which indicates the market is highly competitive. It also comes in above last year’s score of 74.4 According to RentCafe, of the 137 metros analyzed, only about 18% softened compared with 2024. High renewal rates at 63%, up from 62.2% last year, are keeping competition tight. Nationwide, nine prospective renters are competing for each available apartment, taking an average 41 days for the unit to be rented.
When comparing the competitiveness of all regions, the Northeast leads with an overall RCI score of 80.6, followed closely by the Midwest at 80.3 and Florida at 79.5. The South and the Mid-Atlantic round out the top five regions at 76.4 and 76.1, respectively.
Miami continues to rank as the hottest rental market this year, with an RCI score of 92.9. While the market has seen a 4.22% increase in housing supply, renters still have limited options. Almost three-quarters of renters, 72.5%, renewed their leases, leaving fewer than 4% of units available. According to RentCafe, as many as 19 prospective renters are competing for a vacant apartment in the metro, double the national average, with rental units being filled within 33 days.
Midwest markets continue to show their strength, claiming six of the top 10 spots.
Chicago is the second-toughest rental market this year, boasting a big-city lifestyle at more affordable prices than San Francisco and New York. With an RCI score of 88.2, a drop in new apartment construction has made it even harder for prospective residents to find a unit. The city also has a 95.1% occupancy rate, a 61.1% lease renewal rate, and 13 renters competing for each vacant unit.
Suburban Chicago comes in at No. 3. The suburbs did see a slight uptick in available units, but renters stayed in their apartments, pushing the lease renewal rate to 70.3% compared with 69.2% in 2024.
Other key findings from the RentCafe report:
- New York City’s Manhattan makes its debut in the top five hardest places to rent, with RentCafe attributing that to offices buzzing again at pre-pandemic levels. With only 4% of Manhattan apartments available, the number of applicants per vacant unit jumped from eight in 2024 to 11 this year;
- Ranking No. 9, the Twin Cities suburbs saw the largest RCI score increase of all the metros analyzed, jumping nine points from 72.9 to 82.1. RentCafe noted renters like the market’s affordability, good schools, shorter commutes, and easy access to amenities and nature; and
- Fayetteville, Arkansas, has emerged as the hottest small rental market for 2025 with an RCI of 92.4, up 3.7 points year over year. Despite a 3% increase in inventory, demand far exceeds new construction. Almost three-quarters of renters, 73%, have decided to stay put, and apartments are leased within 22 days, the fastest in the nation. Lehigh Valley, Pennsylvania; Harrisburg, Pennsylvania; Lafayette, Indiana; and Palm Beach County, Florida, round out the top five for the hottest small markets.
Looking ahead to 2026, RentCafe predicts the rental market to stay fairly competitive, especially during the peak summer months. In addition, occupancy rates are expected to hover between 93.5% and 93.8%, reflecting strong demand. Lease renewals are expected to start around 62.2% and then are forecast to dip slightly to 61.8% by December.
“New construction is projected to fall sharply to just 0.47% by year’s end,” noted the report. “What’s more, even with more apartments coming online, renters will need to act fast. Early in the year, units may stay vacant for about 51 days, on average, giving apartment hunters a short window to find deals or rent specials. Then, by the end of 2026, apartments could be leasing in as few as 30 days as supply slows and demand stays high.”