SEATTLE, April 24, 2019 /PRNewswire/ -- Chicago, Los Angeles and Atlanta are currently the most popular rental markets in the United States, according to a new HotPads® analysisⁱ. These markets are the most popular among renters looking to relocate, and current residents aren't looking to leave.

To find the most sought-after rental markets, HotPads analyzed search data and ranked the top 50 metro areas based on the share of rent searches that are local and how often they appeared as a top search destination for renters looking to move in from other areas.

Chicago is the country's most sought-after rental market, followed closely by Los Angeles. In Chicago, 86 percent of home and apartment searches on HotPads come from locals, compared to 83 percent of searches in Los Angeles. Both areas are also hotspots for renters looking to make a bigger move – Chicago and Los Angeles are among the most-searched markets in 44 of the country's 50 largest metro areas.

HotPads' Top 10 Most Sought-After Rental Markets

1. Chicago, Ill.
2. Los Angeles, Calif.
3. Atlanta, Ga.
4. Seattle, Wash.
5. Denver, Colo.
6. Philadelphia, Pa.
7. San Diego, Calif.
8. Tampa, Fl.
9. Phoenix, Ariz.
10. Miami, Fl.

The top 10 metro areas all have historically strong job markets, and many are affordable – renters can expect to spend around the recommended 30 percent of their income or less on rent in seven of the most sought-after rental marketsⁱⁱ. However, rent affordability is a rising concern – HotPads' latest quarterly rent report found that rents are growing faster now than they were last year in seven of the top 10.

"As the rental market picks up speed, it makes sense that renters would be drawn to areas with strong job markets and relatively affordable housing costs," said Joshua Clark, economist at HotPads. "However, there are drawbacks to being popular. More new residents typically increase demand for housing, which in turn can make the market more competitive. While it often takes time for rent shoppers to take the plunge and move, those looking to relocate can benefit from making a decision sooner rather than later – if these areas don't keep up with increased demand, rent prices could rise even faster."

In some of the country's most-expensive rental markets, current residents are more likely to look elsewhere for apartments. About a third of San Francisco rent shoppers search elsewhere for rentals, with Los Angeles being the most commonly searched location. Nationally, about 30 percent of renters searching on HotPads look for homes and apartments outside of their current metro area.

On the other hand, many more-affordable metro areas aren't as popular with outsiders, even though current residents tend to search for rentals close to home. In Richmond and Detroit, about three-quarters of rent shoppers search for homes locally – however, few prospective renters from other large markets search for homes in those areas.

HotPads is a Zillow® Group-owned apartment and home search platform for renters in urban areas across the United States. For more information on the U.S. rental market, visit HotPads.com.

HotPads
HotPads is an efficient rental search platform for urban areas across the United States, with features designed for competitive markets such as map-based search, real-time notifications and detailed information on landlords and property managers that help renters spend less time searching and more time feeling excited about their next home.

Launched in 2005, HotPads is based in San Francisco and is owned and operated by Zillow Group, Inc. (NASDAQ: Z and ZG).

HotPads is a registered trademark of Zillow, Inc.

ⁱ HotPads analyzed rental searches on its platform to find the most sought-after areas for renters in the United States. To measure interest from locals, HotPads used search data to determine where the most apartment searches came from local users. To measure interest from prospective renters outside the metro area, HotPads rated each market based on the most popular search destinations for renters in the 50 largest metro areas.
ⁱⁱ According to Zillow's latest rent affordability data
ⁱⁱⁱ The Out-of-Area Search Score indicates how many times a market appeared in the top 10 most popular search destinations within the 50 largest metro areas; a score of 44 means that a market was a top destination in 44 of the 50 largest markets.
^iv Zillow's Q4 2018 Affordability Data

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SOURCE HotPads