Even with the increase in multifamily supply, households continued to face challenges in finding rental units over the past year. RentCafe’s year-end report stated that its Rental Competitiveness Index (RCI) score was 75.2, an increase from 74.4 the previous year.

“One of the biggest factors driving rental competitiveness this year is the rise in lease renewal rates,” according to Veronica Grecu, RentCafe’s senior creative writer and the report’s author.

Grecu told Connect CRE that year-over-year renewals increased in approximately two-thirds of the 139 metropolitan areas analyzed. Higher occupancies meant limited options for renters, resulting in increased competition for the dwindling number of available units.

Miami, FL: The Number-One Hot Spot

RentCafe reported that Miami was the most competitive rental market in the U.S., evolving from a tourist destination to “Silicon Beach, one of the nation’s leading tech and finance hubs.”

Grecu explained that one reason the metro has such a tight supply of units is due to job opportunities, tax advantages, and lifestyle. “This steady inflow adds pressure to an already tight rental market,” she pointed out.

Additionally, Miami is home to recently delivered luxury and Class A apartments. “Many of those new units are priced at the high end, so they don’t immediately ease the shortage of mid-market or affordable rents,” Grecu said. “As a result, well-located, moderately priced apartments still receive multiple applications, keeping the overall market sizzling hot.”

The Midwest Gains Ground

Grecu noted that Midwest rental demand remains robust, thanks to affordability and access to nature. Additionally, “large Midwestern cities are also benefitting from steady growth in tech, manufacturing, logistics, healthcare and renewable energy,” she added. The result is a competitive rental market and a continuous stream of new renters.

The report stated that Chicago is in second place, behind Miami, as the most competitive rental spot. An increase in lease renewals, combined with a decrease in deliveries, has boosted competition for the available units. “Apartments in Chicago are leasing faster than they are in any other major metro, typically within 32 days,” RentCafe pointed out.

Additional competitive Midwest markets included Milwaukee, WI, Grand Rapids, MI and the suburban Twin Cities of Minneapolis and St. Paul, MN.

The Smaller Metros

The report explained that smaller areas in the U.S. have limited housing options, making them challenging places to rent. Topping that “small town” list is Fayetteville, AR, where demand continues to exceed supply. Apartments in Fayetteville are on the market for an average of 22 days before they’re leased, while 12 renters are vying for each available apartment unit.

Grecu said that part of the region’s appeal is the University of Arkansas, which attracts a large student population and regular apartment turnover. Additionally, “the broader Northwest Arkansas region is one of the fastest-growing in the country,” she noted.

Walmart, Tyson Foods, J.B. Hunt, and related suppliers have established their corporate headquarters in the region. As a result, “the growth continues to create new jobs and attract renters from across Arkansas and beyond,” Grecu added.

The 2026 Forecast

The write-up noted that the apartment market should remain competitive in 2026, adding that “by early summer, the number of renters per available unit is expected to reach 11 — the highest level in recent years.”

Grecu said that renters should anticipate increased competition in currently hot markets. Apartment hunters could find additional challenges in New York City’s major boroughs (Manhattan, Brooklyn and Queens). Similar trends could occur in the Midwest, especially in areas boasting robust job growth and affordable living costs.

However, there could be a breather during the early part of the year, with units sitting vacant for an average of 51 days. “This would give apartment hunters a brief window to find deals or rent specials,” Grecu said. “By the end of 2026, that timeframe could shrink to just 30 days as supply slows and demand remains strong.”

An earlier version of this article appeared on ApartmentBuildings.com.