CREJ

Page 16 — Multifamily Properties Quarterly — February 2022 www.crej.com Measurable Results. ® | SVAaccountants.com Adam Kleinmaus , CPA, Principal SVA Certi ed Public Accountants kleinmausa@sva.com Adam consults with real estate developers and property managers on deal structuring, tax credits, and operational issues. He has valuable experience with the unique reporting requirements for government funding programs. Adam and the SVA Team Will Help You With: Bring SVA Your Vision and I’ll Help Make it a Reality. Accessing Debt and Capital Section 1031 Like-Kind Exchanges Compliance Consultation Tax Credits Transaction Structuring Renter Trends T he 2021 rental season brought fierce competition among renters nationwide. Apartment seekers faced a sizzling rental market driven by high demand and low avail- abilities – all the while applicants needed high credit scores to secure an apartment. Known as the poster child for rental competitivity in Colorado, Denver ranked 38 among the top 50 most competitive rental markets in the country. The market was sur- passed only by Colorado Springs, which snatched a higher spot: 27. n Small, “outdoorsy” locations were in high demand last year. Last year, the hottest rental markets were small-sized metro areas, located close to nature, where apartment dwellers enjoy a relaxed, affordable lifestyle. The top three most sought- after rental markets in 2021 were Eugene, Oregon; San Diego; and Knoxville, Tennessee – all of which boasted high demand and very lim- ited available apartments, attract- ing renters with top-notch credits scores. Despite the vaccine rollout, the lingering pandemic continues to affect all aspects of our lives, includ- ing where and how people live. And even with the fast pace of recovery in the nation’s major cities, office attendance remains limited, and many employees continue to work from home all or most of the time. With that in mind, our company tried to assess the competitiveness of the nation’s largest rental mar- kets for the 2021 rental season. To compile this ranking, our research team analyzed 105 U.S. markets based on the most revealing metrics in terms of com- petitiveness: aver- age vacancy days; occupancy rates; number of appli- cants competing for an available apartment; and applicants’ average credit scores. We found that small-sized, “out- doorsy” locations were magnets for renters relocating from very densely populated cities. What’s more, the hottest markets in the ranking had one thing in common: a mix of affordable lifestyle, larger living spaces and proximity to the great outdoors. On a national level, it took 28 days on average for a vacant apartment to be filled during the 2021 rental season. Furthermore, the occupancy rate was 95.4% nationwide, with an average of 14 prospective renters competing for a vacant apartment during the same time period. Rental applicants’ credit score in the U.S. averaged 640 in 2021, slightly up compared to the previous year’s average credit score of 638. Interestingly, we found that more than one-third of renters in the hottest rental markets across the nation had average credit scores sig- nificantly higher than the national average. This means that more rent- ers with above-average credit scores were competing for apartments in the 2021 rental season. In addition, high-earning millennials who were forced to rent due to surging home prices continued to fuel the rental market in 2021. n Denver remains a popular desti- nation for high-earning millennials. According to the report, it took only 27 days on average for a vacant apartment in Denver to become occupied during last year’s rental season. Boasting a high occupancy rate of 95.4%, this location offered limited housing options for rent- ers looking to secure an apartment here. To put things into perspective, for every vacant apartment in Denver, there were, on average, 14 rent- ers competing for that unit. What’s more, renters who applied for apart- ments in Denver last year had an average credit score of 660. That’s 20 points higher than the national average credit score – and a clear indication of the applicants’ finan- cial strength in 2021. Over the past few years, the Denver housing market has seen declining inventory amid increasing HowDenver, Colorado Springs stack up nationally Veronica Grecu Senior creative writer and researcher, RentCafe Please see Grecu, Page 31