Bradenton-Sarasota is one of the most competitive rental markets in US, new report says
Competition for apartments in the Bradenton-Sarasota area ranks among the fiercest in the United States, according to a study by RentCafe.com, a nationwide apartment search website.
Among Florida cities, only Miami-Dade — the most competitive rental market in the United States — and Orlando, third-ranked on the list, were more competitive than Southwest Florida, which ranks 11th.
So, how fierce is the competition in the Bradenton-Sarasota area?
For each apartment that becomes available, there are 16 potential renters, resulting in 96.1% of units being rented at any given time. Apartments typically stay vacant only 31 days a year.
“After a few slow years, in 2022 developers in Southwest Florida — including cities like Sarasota, Fort Myers, Bradenton, Naples, Port Charlotte, Venice and Cape Coral — were building new apartments almost as fast as those in Miami. Still, that was not fast enough to accommodate demand in the region. What’s more, about 73% of renters renewed their leases in Southwest Florida this year,” RentCafe reported.
Almost two-thirds of renters nationwide renewed their leases in 2022 instead of moving or buying a home, RentCafe said.
Becoming a home owner has become more difficult because of record high prices and rising interest rates.
With increased demand for housing of all types, the Bradenton area has seen a surge in apartment construction, while at the same time whetting the appetite of investors.
In each of the past two years, the sale of apartment complexes has ranked as the largest property transaction in Manatee County.
Topping the list in 2022 was Summerhouse Apartments, 11716 18th Place E., Lakewood Ranch, which sold for $107,725,000. Rents there range from $1,816 to $2,601.
In 2021, another Lakewood Ranch apartment complex, topped the list of largest transactions. Creekside Ranch Apartments, 11309 Ranch Creek Terrace, sold for $76.3 million.
Another high-profile sale in 2021 was the $73.5 million brought by Aria at Bradenton, 102 Manatee Ave. W., across the street from Manatee Memorial Hospital.
The escalating cost of housing has put the squeeze on the Bradenton area workforce, including teachers, nurses, law enforcement officers and those with tourism and hospitality jobs.
In 2021, rents in the Bradenton area ranked eighth on the list of least-affordable small American cities, according to a study by New York business research firm AdvisorSmith Solutions, Inc.
That study took into account the average weighted rent in Bradenton and the median household income. With 9,218 rental households in Bradenton, the rent-to-income ratio was 38.7%, compared with the national average of 25% for small cities nationwide, according to the study.
More affordable housing projects are being planned in the Bradenton area, but nobody expects those in the pipeline to come close to satisfying the demand.
The largest affordable housing project in Manatee County — 572 units of multi-family affordable housing at 4505 12th Street Court E., is being fast-tracked through the county’s permitting process.
Elsewhere in Florida
▪ In Orlando, 96.8% of apartments were leased and there were 21 prospective renters for each unit that became available.
▪ Broward County ranked as the 14th most competitive rental market in the United States with 96.1% of units rented, and 17 prospective renters per vacancy.
▪ Tampa rentals ranked 17th on the list of most competitive in the United States with 95.5% of units occupied and 18 potential renters per unit.
This story was originally published January 9, 2023 at 1:40 PM.
