The rental market, just like the housing market, has been experiencing a lack of inventory for the ages. With rentals getting snatched up left and right, experts at RentCafe say it might be time for apartment hunters to look for cities with large amounts of new construction to find a good place to rent.
RentCafe’s new report analyzed the number of new apartments opened in the last 10 years, how large they are, the most recent occupancy rate and the quality of the neighborhoods where they are located.
The report found that the new apartments built during the last 10 years grew the total number of apartments nationwide by 33%, and that Sun Belt states are the best destinations to find new apartments. Specifically, the report designates that the top states are Texas with 12 cities—six of which are among the 10 best locations for finding new, enjoyable rentals—Florida with seven cities, and California with six cities.
Key highlights:
- Boca Raton, Florida comes in first overall; The number of apartments in Boca Raton grew by 50% in the last 10 years, and almost all new rentals are in luxury-like settings close to highly rated public schools, countless attractions and amenities, and miles and miles of gorgeous sandy beaches. The occupancy rate is 91.9%, and the average size of new apartments is 1,027 sq ft.
- Following in second is Midland, texas; Rental apartments in Midland grew by 56.8% since 2012, and 40.7% of them are in top locations. Renters looking for a nice place in Midland have plenty of options to choose from, as only 81.8% of the new apartments are occupied. The average size of new apartments is 913 sq ft.
- Humble, Texas— just 20 minutes outside of Houston— is third with a 45.2% increase in apartments, 78% of which are in top locations. The occupancy rate is 91.1% and the average size of new apartments is 925 sq ft.
- Next up is Frisco Texas in fourth with a whopping increase in apartments, at 197.4%, 92.9% of which are located in top locations. A suburb of Dallas, Frisco is one of the fastest-growing cities in the entire U.S. thanks to its booming economy, amazing sports scene, countless entertainment options, proximity to the great outdoors and high safety rating. The occupancy rate is 95.1%, and the average size of new apartments is 933 sq ft.
- Fifth is McKinney, Texas, another suburb of Dallas where the number of apartments in McKinney has doubled since 2012 (111%), and over 90.5% are located in great neighborhoods with close-knit communities that are safe and welcoming. The occupancy rate is 94.1% and the average size of new apartments is 918 sq ft.
- Alpharetta, Georgia follows in sixth; Alpharetta has evolved in the last two decades to become “The Tech Hub of the Southeast”, attracting many tech professionals each year. To that extent, there are 35.6% more apartments in Alpharetta now than there were in 2012, with 100% built in quality locations that are very popular with renters. The occupancy rate is 93.3%, and the average size of new apartments is 995 sq ft.
- Next we see Orlando, Florida in seventh; The number of apartments in Orlando has grown by 40.6% since 2012, with 35.8% being located in top-notch communities close to beautiful scenery, some of the world’s best theme parks and plenty of entertainment options. The occupancy rate is 91.3%, and the average size of new apartments is 981 sq ft.
- Eighth is Spring, Texas, a suburb of Houston that saw a 112.4% growth in apartments due to ExxonMobile’s 2011 decision to build a campus there and expand its operations in Texas. Also, 48% of the apartments are in top locations, the occupancy rate is 94.5%, and the average size of new apartments is 947 sq ft.
- Redmond, in ninth, is the “Tech Capital” of the state of Washington. There are 85.1% more new apartments now in Redmond than there were 10 years ago, and 98.2% are in very popular neighborhoods. The occupancy rate is 92.5%, and the average size of new apartments is on the smaller side at 740 sq ft.
- Last in tenth is Katy, Texas with a massive apartment growth at 123.2%, 44.9% of which are in top locations. Katy’s population climbed 55% from 2010 to 2020 largely due to the highly rated schools here and access to major employers in and around Houston. And, with plenty of health care facilities and recreation centers, Katy is also a popular retirement spot in Texas. The occupancy rate is 94.9%, and the average size of new apartments is 951 sq ft.
Major takeaway:
“It’s getting harder and harder to find apartments these days, as rentals are a red-hot commodity and more renters are deciding to renew their leases and stay put — so much so that apartment buildings are almost full in every metro area across the U.S,” said Veronica Grecu, senior creative writer/researcher for RentCafe and author of the report. “With older buildings filled up, you have a higher chance of finding available apartments in newly built communities, and this might just be the best excuse to upgrade to a newer apartment in 2023.”
While these cities do boast a higher chance for finding an apartment, the lowest occupancy rate is in the high 80s, meaning even with new construction the rental market is still lacking in proper inventory and tenants must still fight to find good rentals.
For the full report, click here.
