According to a new report from RentCafe, Miami is leading the race in 2024 as the most competitive rental market. This is great news if you've ever thought, 'I love paying exorbitant rent while sweating in places I didn't know could sweat.' But hey, at least your living room doubles as a sauna!

And then there's the Midwest, rising in rental market competitivity. 'Hey, did you hear about Milwaukee? It's the new Miami!' said no one ever... until now:

Before we dive in on Milwaukee, the Venice of the US, a quick note that nationwide, the U.S. rental market has a national competitivity score of 73.4. This reflects a moderately competitive landscape where vacant apartments are occupied within an average of 41 days.

With that out of the way, the corny Milwaukee jokes will resume…

The true surprise was Milwaukee and the Midwest, which is shedding its "Rust Belt" moniker, and emerges thanks to its burgeoning tech :compand manufacturing sectors. We asked Peter The Intern for some more insights as to what was going on, and the answer was what you’d expect from an unpaid GenZ:

🏆 But seriously: This revitalization, coupled with the affordability the Midwest offers, has made cities like Milwaukee hotspots for renters, aspiring homeowners, and professionals alike, keen on leveraging the region's economic opportunities without the hefty price tag associated with coastal cities.

The Midwest's ascendance in the rental market is not happening in a vacuum. Its affordability and economic resurgence are drawing a broad spectrum of residents, from long-time locals to new arrivals, all attracted by the promise of a balanced lifestyle that the Midwest offers.

RentCafe's analysis of the rental market reveals a nuanced picture of rental demand and supply across the country. The TLDR: good news for renters, so-so for investors. The findings indicate a slight easing in market pressures, with a modest increase in the days vacant apartments remain unoccupied. All of this is hinting at the impact of a burgeoning supply of new apartments.

This trend suggests a shift towards a more balanced market, albeit with regional variations, as evidenced by the Midwest's dominance and the enduring appeal of markets like Miami.

So What? As we delve into 2024, the rental market landscape is characterized by evolving dynamics. The Midwest is emerging as a beacon of affordability and economic opportunity. Other markets will follow. All this is challenging the traditional dominance of Sunbelt states and coastal cities. The shift underscores a broader trend towards geographic and economic diversification within the US rental market, reflecting changing preferences and priorities among renters, as well as the impact of economic and demographic trends shaping the nation's urban and regional development.

Market Getting Chipy: Santa Clara, California is home to Nvidia. It’s that small chip manufacturer that’s on par to reach a 2 Trillion market cap (not financial advice). So naturally, you’d think “that has to be a competitove market”.

Well not so much.

Despite Nvidia's significant presence and economic contribution to the area since the 1990s, local real estate experts Andy and Lori Orion note that the company's stock performance hasn't directly influenced local housing prices. They remained steady in the cool — get this — $1.5 million to $2.1 million range. Not bad right?

High earners from Nvidia and other tech giants often opt for more upscale areas, leaving Santa Clara's market. (WSJ)

China’s Troubles: Chinese developer Country Garden is facing a liquidation petition filed by creditor Ever Credit Limited, a unit of Hong Kong-listed Kingboard Holdings, over non-payment of a $205 million loan.

The petition, set for a court hearing on May 17, has led to an 11% drop in Country Garden's Hong Kong shares and could further strain the Chinese property sector, which accounts for a quarter of China's GDP. This comes a month after China Evergrande Group, the world's most indebted property developer (with a smooth $300 billion in liabilities) was ordered to be liquidated by a Hong Kong court. Country Garden, which has total liabilities of 1.36 trillion yuan ($188.9 billion) as of the end of June 2023, has appointed KPMG and law firm Sidley Austin as advisers for its debt restructuring process. So what does this have to do with North American real estate? Almost 25% of Chinese GDP is tied to real estate. The collapse of two enormous giants in the market could spread contagion to the rest of the economy, which could impact investment and rents here. (Reuters)

Renovation Declines: Lowe's beat Wall Street's Q4 earnings and revenue estimates, reporting earnings per share of $1.77 and revenue of $18.60 billion, compared to the expected $1.68 and $18.45 billion respectively. However, the company's net income for the three-month period ending February 2 was $1.02 billion, down from $22.45 billion in the year-ago period. The home improvement chain also reported a 6.2% year-over-year drop in comparable sales due to weaker demand for DIY projects and poor weather in January. The company expects lower earnings moving forward due to a decline in renovation projects. Consumer-led renovations slowing down could be a sign households are bootstrapping their budgets in reponse to economic pressures. (CNBC)

2 Trillion: Is the value gained by the housing market in 2023 despite higher interest rates. In December 2023, the U.S. housing market witnessed a significant gain, with the total value of homes increasing by $2.4 trillion to $47.5 trillion, marking a 5.3% rise from the previous year—the most substantial growth in 11 months. This surge was attributed to a shortage of homes for sale, which, despite sluggish demand due to high mortgage rates and affordability challenges, continued to push home values upwards. (Redfin)

13.8%: Q4 2023 revealed a significant downturn in the mortgage industry, with 1.35 million mortgages secured by residential property issued, a 13.8% decline from the previous quarter and continuing a trend seen in 10 of the last 11 quarters. This decrease left total residential lending activity 16.5% lower than the previous year and 67.7% below the peak in early 2021, amid high home prices, rising mortgage rates, and low home supply. All major lending categories experienced declines, including purchase loans (down 18.4%), refinance deals (down 7.9%), and home-equity credit lines (down 12.7%), with a total of $417.4 billion worth of residential mortgages issued in Q4 2023. (ATTOM)

7.2M: The US housing market in 2023 grappled with an ongoing shortage of new homes, a condition exacerbated by over a decade of underbuilding in relation to population growth. Despite 1.67 million new household formations in 2023, contributing to a total of 17.2 million from 2012 to 2023, housing starts (at 14.7 million) and completions (13.4 million) lagged behind, highlighting a persistent gap between demand and supply. This gap widened further in 2023, with single-family home constructions falling short by 7.2 million homes, although the inclusion of multi-family constructions narrows this deficit to 2.5 million homes. (Realtor.com)