High season on the Florida rental market has just finished, with Miami emerging as the most competitive in the country. Demand remains sky-high, keeping occupancy and rental rates on an upward trajectory. In addition, rental properties in several other Florida metros rank among the busiest markets in the US.
Miami most competitive rental market in the US
The summer months rank as the high season for rentals in the US, marking the busiest period for demand and tenancy renewals. In a recent RentCafe survey, Miami was the most competitive rental market in Florida and in the US as a whole.
RentCafe gave the city a score of 122, considerably ahead of Miami’s nearest competitor, Milwaukee, with 116. The survey points out that although the population of Miami has dropped, demand remains as high as ever.
Miami has an occupancy rate of 97.1%, the highest in the country. In addition, 73% of tenants renewed their rental contracts this summer, a figure surpassed by just New Jersey and Suburban Philadelphia.
Other hot Florida rental markets
Three metros in the Sunshine State ranked in the top 20 most competitive markets this summer, with Broward County and Orlando in ninth and tenth positions, respectively. Both scored 98 in the RentCafe ratings.
The map below shows other hot spots in Florida. They include Tampa and Southwest Florida, particularly around Sarasota and Charlotte County. All rank among the places with the most demand for rental properties in Florida.
(Source: RentCafe analysis of Yardi Matrix data)
This metro area lies close to Miami and, as the RentCafe report points out, benefits from the nearby competition. It includes sought-after locations such as Fort Lauderdale and Coral Springs.
Broward County had 95.5% occupancy this summer, and almost 67% of tenants renewed their lease. As a result, supply remains unable to keep up with demand, with 14 would-be tenants competing for each rental unit.
Florida’s capital of tourism regularly ranks as one of the most challenging spots to find rental property in the state. It has high levels of job creation as well as a buoyant tourist sector.
As a result, the rental market in Orlando is hugely competitive. The vacancy rate was less than 5% in the summer when almost two-thirds of tenants renewed their contracts. Against the background of short supply, the average time to find new tenants stood at just 32 days.
General rental picture in the US
The RentCafe study included 139 markets across the US and analysed key rental metrics during the summer season. They included the ratio of rental apartments, competition for each property and the number of rental contract renewals.
These metrics allow the company to create its Rental Competitivity Index (RCI), and rank each metro accordingly. In the summer, the national RCI stood at 60, a score classed as “moderately competitive”.