As interest rates remain high to combat languishing inflation, warding off potential home buyers, the rental market has been very competitive.
The study found that those North Jersey areas — which comprise Jersey City, Hoboken, East Orange and Hackensack — are twice as competitive as Manhattan due to a drastic housing shortage.The US rental market competitivity at the start of 2023 compared to 1 year prior.The occupancy rate combined with a record 72% of renters choosing to renew their leases — and, on average, 12 people competing for one apartment — led to a Rental Competitivity Index rate of 67 at the start of 2023.
To calculate the competitive score, each metric was assigned a weight: average vacant days , occupied apartments , prospective renters , lease renewal rate , and share of new apartments .Housing in Brooklyn cannot keep up with the demand, the study notes. Newly opened apartments added just 0.3% to what was available on the market — and it wasn’t enough to lower the 96% occupancy rate.
Not a flex. No one can afford to buy a home.