These Are the 5 Hottest Rental Markets. Do You Live in One?

Housing has been a huge disappointment for many Americans recently. Soaring house prices and rising interest rates caused housing to fall to its lowest level of affordability in 40 years in 2023.

The result is many people have turned to renting homes and apartments, which has caused some rental markets to heat up. Here's where rentals are the most in-demand and how you can lower your rent if it's weighing down your budget.

The five hottest rental markets

Data from RentCafe shows that rental demand isn't quite as high as it was last year, but it's still competitive. Nationwide, seven people are competing for every one apartment this year, compared to eight last year.

These rental markets are seeing the highest demand:

• Miami-Dade, Florida
• Milwaukee, Wisconsin
• North Jersey, New Jersey
• Suburban Chicago, Illinois
• Grand Rapids, Michigan

The Miami area is the hottest market right now, with 14 prospective renters for each apartment available. With that level of demand, it takes just 36 days to rent a vacant apartment, compared to the national average of 41 days.

Unfortunately, even if you're not in a hot rental market, your rent has likely gone up substantially over the past few years. Rent.com says average rents have increased 21% from their pre-pandemic levels. The result is median rent prices jumped from $1,584 in January 2020 to $1,981 in February 2024.

Tip: Most financial experts recommend not spending more than 30% of your monthly income on your rent. Staying within this financial boundary may make it more likely that you'll get approved for your rental when submitting your application.

How to pay less in rent

With rents rising quickly over the past few years, you may be on the lookout for a good deal. Thankfully, there are a few things you can do to help ease the pain of rising rents. Here are three.

1. Negotiate your monthly rent

I once negotiated my rent down by $100 per month after the homeowners had a difficult time renting out the home. That saved me $1,200 in the first year of renting. It's certainly worth a try, considering 1 in 4 renters successfully negotiate their rent down to a lower price.

2. Sign for a longer lease

Signing up for a longer lease is a good strategy when trying to get a lower monthly rental payment. Realtor.com says negotiating for a lower monthly rental price is easier if you give something in return, like signing up for a two-year lease instead of one year.

3. Sign a lease during off-peak months

The rental market is seasonal, which allows renters an opportunity to lower their costs during the offseason. For example, ApartmentList says rents typically fall nationally by an average of 1.7% in December and January.

This means you can probably get good deals during the winter and may also be able to negotiate a lease renewal for a lower amount. Realtor.com says some rental managers are open to a good tenant negotiating a temporary rent reduction during the winter months.

While rental prices probably won't continue to climb as quickly as they have over the past couple of years, rental affordability will likely be an issue for many Americans this year. Negotiating for a lower monthly payment, signing a lease during the offseason, or committing to a longer lease term can all be great ways to lower your costs. Just remember that picking the right time and suggesting a reasonable price are crucial to increasing your chances of getting a good deal.