3-28-2023 12:35pm

North Jersey Surpasses Miami as America's Hottest Rental Market

America’s Hottest Rental Markets at the Start of 2023: North Jersey Overtakes Miami as Competition Builds Up in the Northeast.

Morristown, NJ - The rental market in the United States has seen a significant shift at the start of 2023, with North Jersey becoming the most competitive rental market in the country, outpacing the Sunbelt.

The National Rental Competitivity Index (RCI) score stands at 60 out of 126, indicating a moderately competitive rental market across the country, on average. North Jersey, which includes Morristown, is the country's hottest rental market, with an RCI score of 115 out of 125.

The Northeastern region is experiencing a boom, with eight of the nation's 20 most competitive markets for renting located in the area.

The shift in demand is due to a combination of factors, including rapid inflation, interest rate hikes, high home prices, and increased costs of living, leading many renters to reconsider their housing options.

North Jersey's rise to the top of the rental market is primarily driven by aspiring homebuyers who continue to rent while enjoying a relatively affordable cost of living for the tri-state area. This allows renters to save for down payments until the housing market cools down enough for them to purchase a home.

Similar to North Jersey, the overall housing supply in the U.S. is struggling to keep up with demand.

At the beginning of 2023, vacant apartments were occupied within 38 days on average nationally, with eight prospective renters competing for each available apartment, and an occupancy rate of 94.2% with 60.7% of apartment dwellers renewing their leases. Continually, the number of newly opened apartments accounted for a modest 0.43% of the nation’s housing supply, making finding a new place to call home extremely challenging this time of year.

North Jersey, which includes Morristown, has become a desirable location for renters looking for nicer, more spacious apartments while still being close to the attractions of the Big Apple. The severe shortage of housing in North Jersey has pushed the occupancy rate to a high of 96.6%. At the beginning of the year, it took 34 days for the average vacant apartment in North Jersey to become occupied, with 12 prospective renters competing for the same available unit.

Other Northeastern markets, such as Brooklyn, NY, and Boston, are also experiencing intense competition for housing, with high occupancy rates and limited numbers of new apartments. The situation in these markets is exacerbated by the influx of renters from other parts of the country and the high demand for housing, particularly among students returning to in-person classes.

In Morristown, the rental market competition remains fierce, making it more important than ever for prospective renters to be prepared and diligent in their search for a new home.