Phoenix’s accelerated apartment construction paid off — partly. While competition slightly loosened, people looking to rent an apartment in Phoenix chose to renew their leases than take advantage of the new units in town. As a result, Phoenix ranks as the 61st hottest market of 2024, according to an analysis from RentCafe. 

MORE NEWS: 2025 housing market predictions from Arizona Association of REALTORS

Read on for a comparison with 2023: 

  • Even with the share of new apartments increasing to a robust 4.69% in 2024 (1% more than in 2023), Phoenix struggled to keep up with demand. In fact, 57.5% of renters chose to renew their leases (up 1.6% compared to 2023), which kept the occupancy rate at 92.4%.
  • Each vacant unit in the area attracted 8 prospective renters (just 1 less than last year’s average) and apartments got occupied in 42 days (as opposed to 39 days in 2023). For context, the national averages indicate that 9 renters competed for each vacant unit and apartments stayed on the market for 40 days.   
  • Phoenix’s Rental Competitiveness Index (RCI) score, which shows how difficult it is to secure a lease in the market, stands at 66, indicating a moderately competitive market.  

The Midwest stands out as a red-hot region for renters in 2024, with five markets in the nation’s top 10 and two on the podium — Suburban Chicago and Milwaukee. Offering lower living costs, many Midwestern markets appeal to remote workers in search of spacious, budget-friendly housing. Additionally, the region’s growing focus on tech, manufacturing, and renewable energy continues to attract job seekers looking for affordable places to live.

Still, Miami maintains its hold as the hottest rental market in 2024, despite Florida’s waning appeal due to prolonged competition and a high cost of living. However, Chicagoland is quickly closing in.

Key Takeaways:

  • The national RCI score of 74.4 reflects a highly competitive rental market, with more renters staying put compared to 2023 — a trend that is likely to continue next year.
  • Miami holds the top spot, but its dominance faces growing competition from Suburban Chicago and Milwaukee, showcasing the Midwest’s strong appeal for apartment hunters.
  • Louisville, KY, emerged as the fastest-growing market for renters in 2024 due to limited available apartments. It is followed by North Carolina’s Piedmont Triad.
  • In Lehigh Valley, PA — the hottest small market for apartment hunters in 2024 — more than 80% of renters stayed put, faced with extremely limited options to choose from.