Real Estate

These Are The Hottest Rental Markets in California, New Analysis Says

Some of the most competitive apartment rental markets nationwide are in California as more families are priced out of single family homes.

CALIFORNIA — Surprising corners of California have some of the most competitive markets for apartment hunters nationwide so far in 2025, according to a new report that ranked the country's hottest rental markets.

Rent Cafe, a website connecting renters and property managers, said its ranking of the hottest rental markets nationwide revealed 10 of the top 20 most competitive metros are located in the Midwest, which appeals to remote workers who are seeking affordability and more space. Just two are In California: Eastern Los Angeles and Orange County. However, the Inland Empire and the East Bay stand out as a trending markets, trending upwards in terms of demand faster than other major Metro region over the last year.

"With more renters relocating from coastal cities in search of affordability and jobs in places like Riverside, CA; Rancho Cucamonga, CA; and San Bernardino, CA, vacant units now fill in 47 days (one day faster than early 2024), and the number of applicants per available unit has jumped from nine to 12," Rent Cafe noted.

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Similarly, the Bay Area's East Bay is increasing in demand, Rent Cafe found.

"Likewise, the East Bay area in California — which includes Oakland, CA; Fremont, CA; Hayward, CA; and Richmond, CA — has also become more competitive with its RCI score jumping 7.6 points to now stand at 72.3 and placing it 49th in the U.S. Of course, remote work continues to shape the apartment landscape. For example, some San Francisco residents move to East Bay locations seeking more space for the money while still being within commuting distance of their jobs," analysts noted.

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"However, with fewer newly built apartments, the supply has tightened, thereby prompting more renters to stay put. Accordingly, lease renewal rates have climbed to 51.2%, up from 44.8% in early 2024, and further limiting the available options. As a result, apartments are filling up faster than last year, with even more renters competing for each vacant unit."

Orange County with an occupancy rate of 95.6 percent, has a competitive score of 80. Apartments are typically vacant for about 45 days* before they are snapped up.

Eastern Los Angeles with an occupancy rate of 96 percent, has a competitive score of 79.4. Apartments are typically vacant for about 44 days before they are snapped up.

Here’s the full list of the hottest metro markets:

  1. Miami
  2. Suburban Chicago
  3. North Jersey, New Jersey
  4. Lansing-Ann Arbor, Michigan
  5. Suburban Philadelphia
  6. Grand Rapids, Michigan
  7. Cincinnati
  8. Omaha, Nebraska
  9. Bridgeport-New Haven, Connecticut
  10. Milwaukee
  11. Suburban Twin Cities, Minnesota/Wisconsin
  12. Detroit
  13. Broward County, Florida
  14. Orange County, California
  15. Kansas City, Missouri
  16. Silicon Valley, California
  17. Eastern Los Angeles
  18. Chicago
  19. Orlando, Florida
  20. Eastern Virginia

Rent Cafe ranked the markets on five key metrics for rental competitiveness:

  • The number of days apartments were vacant;
  • The percentage of apartments that were occupied by renters;
  • The number of prospective renters competing for an apartment;
  • The percentage of renters who renewed their leases; and
  • The share of new apartments completed recently.

Rent Cafe said that many people are exploring new housing options that better meet their needs — whether they’re chasing career goals in major urban hubs, seeking a quieter life in a smaller city or suburb, or looking for a fresh start in a new neighborhood.

Rent Cafe said key takeaways of the analysis are:

  • Given the competitiveness for apartments nationwide, more renters are staying put.
  • Suburban Chicago’s No. 2 ranking in large markets cements the Midwest’s appeal for renters who are seeking affordability without sacrificing convenience.
  • California’s Inland Empire is the top-trending rental market after a 9.5-point jump in its competitive index since early 2024, with the state’s East Bay also growing hotter (up 7.6 points). Manhattan, New York, landed between the two (up 8.2 points).
  • With only 3 percent of units available, Fayetteville, Arkansas — the hottest small rental market — sees vacant apartments fill up in a record 22 days.

CORRECTION: Due to a reporting error, an earlier version misstated the number of days the average apartment is vacant in Orange County.

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