Buying a home doesn’t make sense for everyone, but in several highly sought-after markets, it might be harder to rent.
Regions like the Sun Belt have experienced a construction boom, and, in turn, a drop in prices due to more inventory — but for coastal cities, that hasn’t quite been the case.
“The US built more new units in 2024 than any year in the past half-century, but that boom largely bypassed the Northeast and coastal California, which is exactly why rental competition there is so intense,” Zillow senior economist Kara Ng said.
Zillow ranked the hottest rental markets heading into the summer by looking at metros where rents increased quickly, vacancies dropped, and rental concessions — like waived fees or a month free off the rent — were rarely offered.
It shouldn’t come as a surprise that big cities like New York and San Francisco are regularly the busiest rental markets in the country; vacancies are low, and rents are climbing. However, Zillow found that one Northeastern city with a population that’s roughly 2% of New York City’s took the cake for hottest market: Providence, Rhode Island.
“In Zillow’s hottest rental markets, the math is simple: More people want to live there than there are homes to rent — whether for access to amenities, strong job markets or family ties, renters are competing over a limited supply,” Ng said.
Providence, Rhode Island, a city with a population of about 195,000, is small, and its size plays a factor in its ranking. It’s recently been labeled an unaffordable place to buy a home, mainly due to its lack of housing inventory, which, in turn, can drive up rental prices. Providence also has the lowest share of concessions in the top 10.
Read below to see the top 10 hottest markets for renters, according to Zillow.
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