Pa. Rental Market Saw Highest Competition in These Four Areas in 2023

Renters in 2023 saw more new apartments built, a moderately competitive rental market and fewer renewed leases, according to a year-end report by RentCafe.

More new apartments were built in 2023 than in 2022. Last year, 1.89% of the available rental units were built since January, whereas only 1.5% of the available rental units at the end of 2022 were newly built that year.

With a slight increase in available apartments, renters faced a moderately competitive rental market in 2023. RentCafe analyzed the 139 largest markets nationwide to find the national Rental Competitivity Index for last year, which was 59.5 out of 130.

This score was found using various factors, including:

• Average number of renters competing for a vacant apartment: 9 (14 in 2022)
• Average number of days rentals were vacant: 38 (32)
• Percentage of the available apartments that were built since January: 1.89% (1.5%)
• Percentage of renters who renewed their leases: 60.2% (62.7%)
• Percentage of apartments that were occupied 94% (95.3%)

As seen by these numbers, renters in 2023 saw a slightly less competitive market than they did in 2022, with fewer renters vying for the same unit, longer vacancies, more new apartments built, fewer renewed leases and slightly less occupancy across the board. Of the 139 rental markets analyzed in the study, 86% became more relaxed in 2023. However, in places where no new apartments were built, renters faced steady competition.

The most competitive rental market in 2023 was Miami-Dade County, Florida, with a competitive score of 122. Following behind were North Jersey and several locations in the Midwest.

In eighth place, Suburban Philadelphia scored a 99 for competition. In Philly, the average number of vacant days for a rental unit was 41, 94.7% of apartments were occupied, the average number of prospective renters per apartment was 11, the lease renewal rate was 75.4% and the share of new apartments was 0.9%.

Pennsylvania made the list for most competitive markets again with Pittsburgh, which placed 20th with a competitive score of 78. In Pittsburgh, the average number of vacant days for a rental unit was 39, 94.1% of apartments were occupied, the average number of prospective renters per apartment was seven, the lease renewal rate was 65.9% and the share of new apartments was 0.2%.

Notably, two Pennsylvania cities also made the list of hottest small rental markets. Harrisburg ranked No. 3 with a competitive score of 126, and Lehigh Valley ranked No. 6 with a competitive score of 116. These areas saw few new units built recently and, in turn, higher competition among renters.