2024 Mid-Year Review: Top Rental Market Findings by RentCafe.com

The first half of 2024 revealed intriguing trends and shifts in the rental market. To keep you informed, RentCafe.com has compiled the top must-read reports of the year so far. Packed with exclusive data, engaging visuals, and expert analysis, these reports offer a comprehensive look at the forces shaping the market as it continues to evolve.

Charleston Tops Best Cities for Renters in 2024

The perfect city for renters might not exist, but several cities come remarkably close to checking all the boxes. Charleston, SC, is the best city for renters in 2024 for the second year in a row, followed by Atlanta and Sarasota, FL. For those prioritizing affordability, San Marcos, TX, shines with the lowest cost of living and housing, while Miami boasts the strongest local economy. If quality of life is key, look no further than Washington, D.C. Notably, the South dominates the rankings, claiming 38 out of the top 50 cities for renters in 2024.

Read the full report here.

Larger Apartments Are Making a Comeback

In 2023, the average size of new apartments in the U.S. rebounded to 916 square feet, driven by an increase in spacious two- and three-bedroom units catering to renters’ desire for more space. Florida cities like Jacksonville and Orlando boast some of the largest new apartments, while Seattle has the smallest. Notably, rentals in major cities such as Manhattan, San Francisco, Chicago, and Los Angeles are also expanding, with Chicago apartments growing by an average of 97 square feet over the past decade.

Read the full report here.

Adaptive Reuse Apartments Are Surging Again

Adaptive reuse surged in 2023, with developers converting buildings into 12,713 new apartments, up 17.6% from the previous year. This resurgence, driven by growing housing demand, marked a return to the high activity levels of 2019 and 2020. While office conversions remain popular, 2023 saw a notable shift towards repurposed hotels, especially in Manhattan, now a leader in adaptive reuse. A growing Atlanta suburb leads in office conversions, followed by Milwaukee and Indianapolis. This trend is expected to continue, with 151,000 new apartments currently in development, signaling a major revival in office conversions in the coming years.

Read the full report here.

Miami-Dade’s 604 Vacant Plots Could Add 77K Apartments

Miami-Dade County faces a pressing affordable housing crisis, exacerbated by rising costs and insufficient development. However, Miami-Dade’s 604 vacant plots present an opportunity to build 77,000 new apartments, offering much-needed relief for blue-collar workers and low-income families. This significant addition could accommodate 192,000 potential renters and potentially moderate rent growth, currently the highest in the nation, from 90% to 74% within a decade.

Read the full report here.

U.S. Sees Build-to-Rent Housing Boom

Build-to-rent homes are experiencing unprecedented growth, fueled by a confluence of factors: the rise of hybrid work, Millennials entering their prime nesting years, and challenges in the homebuying market. This convergence of demand from renters and investors alike has propelled build-to-rent to its historical peak. A record-breaking 27,500 build-to-rent houses were completed in 2023, up 75% from the previous year and triple the number in 2021. Phoenix, Dallas, and Atlanta lead the charge, accounting for nearly one-third of all new build-to-rent units. And, with over 45,400 houses currently under construction, the future of single-family rentals looks brighter than ever.

Read the full report here.

Silicon Valley Is Top Renting Sweet Spot

Finding the ideal rental location isn’t just about earning more or spending less — it’s also about finding the sweet spot where income and expenses align. For renters seeking this balance, Sunnyvale in Silicon Valley tops the list of renting sweet spots, thanks to the nation’s highest median wages that easily cover living costs. Surprise, AZ, a Phoenix suburb, comes in second, followed by three Washington, D.C. suburbs: Arlington, VA; Bethesda, MD; and Alexandria, VA. Texas boasts the most cities with financially comfortable renters, with Round Rock leading the state.

Read the full report here.

Gen Z to Pay $145K on Rent by Age 30

Generation Z, poised to be the most diverse and highly educated generation in American history, is also on track to be the highest-earning. But, how does their housing affordability compare to Millennials? This digitally savvy generation, nearly 66 million strong, will earn $550,000 in their 20s, a 14% increase over Millennials. Income varies by location, peaking in coastal metros like San Jose and San Francisco. Despite higher earnings, Gen Z will still spend 14% more on rent by age 30, totaling $145,000 compared to Millennials’ $127,000. Interestingly, both generations dedicate about 27% of their income to rent, highlighting the consistent burden of housing costs, even with rising wages.

Read the full report here.

Bozeman Is Best College Town in 2024

Your college experience is defined by more than just academics — the town itself plays a crucial role. This year’s top-ranked towns offer a balance of affordability, high quality of life, and educational opportunities. We ranked 236 towns and cities based on 12 metrics, including cost of living, tuition, graduation rates, and entertainment options. As such, Bozeman, MT, is the best college town in the U.S. for 2024, followed by Pullman, WA, and Clemson, SC. Notably, Western college towns dominate the top 20, thanks to their young, educated populations and abundant natural beauty.

Read the full report here.