The Housing Markets Where Properties Are Being Rented Out the Fastest

September 30, 2025 2 Mins Read
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Other National Rental Hot Spots

Minneapolis, MN

The Twin Cities of Minneapolis and St. Paul don’t have enough housing to go around, according to the Minnesota Realtors March 2025 Housing Market Report. Zoning regulations and citizen input (commonly known as NIMBYs, or Not In My Backyard) are being blamed. 

Minneapolis is the lowest out of 128 Midwest cities in new housing development, according to the MinnPost. The result has been a rental increase from 2019 to 2025, by almost $200 a month, with rents for unsubsidized apartments now more expensive than the mortgage payment on an average single-family home. 

Milwaukee, WI

Dubbed “One of America’s Most Cutthroat Rental Markets” by The Wall Street Journal, Wisconsin’s largest city is experiencing extreme rental demand due to slow development.

“The lack of new supply is what’s making Milwaukee a hot rental market,” Chad Venne, the real estate program director at the University of Wisconsin-Milwaukee, told the Journal.

Brooklyn, NY

NYC rents surged at the start of 2025, according to commercial real estate website Globe St. The city’s ever-fashionable borough of Brooklyn was in high demand, experiencing a 1.4% year-over-year rental increase in September, according to Apartments.com.

Redfin’s Hottest Neighborhoods of 2025 saw the ZIP code 11238, encompassing Prospect Heights and Clinton Hill in Brooklyn, earn its coveted top spot due to year-over-year growth.

“Many companies now require workers to be in the office at least two to three days a week—so people are coming back. In my opinion, Brooklyn has become even more popular than Manhattan,” said Redfin Premier agent Ian Rubinstein in the company’s press release.

Rochester, NY

Apartment Advisor surveyed its list of the most competitive rental hot spots, with Rochester, New York, coming out on top. It attracts priced-out renters from other cities and remote and hybrid workers looking to maximize their rental dollars. Rents increased by 14% over the last year, as the city experiences a housing shortage, with a projected 24,000 new apartments needed by 2040.

Other cities featured in Apartment Advisor’s survey of high-demand metros include:

  • Allentown-Bethlehem-Easton, PA-NJ 
  • Riverside-San Bernardino-Ontario, CA
  • Baltimore-Columbia-Towson, MD

Final Thoughts

Prospective new landlords might have a tough time finding rentals in high-demand markets such as Miami and the Chicago suburbs, but tertiary markets surrounding these cities could provide good opportunities.

The U.S. housing market is not monolithic and liable to change. Monitor new business development (data center construction is transforming many rural areas), changing zoning laws, housing initiatives, and new transportation development for investment opportunities. Equally, finding single-family rentals in suburban areas within commuting distance might offer greater availability, fewer regulations, and less tenant churn than multifamily housing.

Smart strategizing also plays a crucial role in running a profitable rental business, and it doesn’t always mean jacking up rents at every opportunity, as many larger complexes do. As it can cost around $5,000 for many landlords to replace a new tenant, maximizing retention is imperative.

Despite record construction in some areas, the U.S. still has a chronic housing shortage, which is fueling the housing crisis. For landlords willing to scrutinize each market and strategize well, continued opportunities await.

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