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3/27/23
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This report provided by RentCafe, a division of Yardi.com
Orange County and Eastern LA are not only the toughest markets for apartment searching in California, but they also rank as the 11th and 20th most competitive in the nation. Surprisingly, markets that had slowed down in recent years, like Western LA, saw a significant increase in demand compared to one year prior.
To find this out, RentCafe calculated a Rental Competitivity Index (RCI) - based on key metrics: occupancy rate; vacant days; prospective renters per vacant unit; renewal lease rate; and the share of new apartments. Here are some of their findings:
• Orange County is the toughest market in California for renters that are searching for apartments and 11th nationwide, mainly because zero apartments were opened here recently. Topped with more than half of apartment dwellers renewing their leases, 51%, occupancy rate reached a sky-high of 96%. So, in Orange County there are 11 people applying for each vacant apartment, that gets filled in in 39 days.
• Eastern LA comes in as the 3rd most competitive rental market in California and 20th nationwide, with 16 prospective renters and an occupancy rate of 97%, plus a lease renewal rate of 42%. The demand increased here mainly because of the lack of new apartments, since the inventory grew close to zero (0.1%) at the end of 2022.
• These two hot markets also snatched the 11th and 20th spots as the most competitive markets all over America, in a category led by North Jersey that has a lease renewal rate of 72% and an occupancy rate of almost 97%.
• Nationwide, 94.2% of the rental apartments were already occupied at the start of 2023, especially as almost two-thirds (60.7%) of renters all around the country chose to stay put and the supply of new apartments grew by a very modest 0.43%. As a result, the average vacant apartment gets filled in 38 days, with eight prospective renters competing for the same unit.
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