Wilmington’s rental market has cooled slightly in the second quarter of 2024, according to the latest analysis from RentCafe.com. The city’s Rental Competitive Index fell to 66.1 in Q2, down from 67.2 in Q1, but still significantly higher than the 45 recorded in Q2 2023. Nationally, the competitiveness index held steady at 73.4.
By the numbers:
- Vacancy duration: Rentals in Wilmington remained vacant for an average of 51 days in Q2, up from 44 days in Q1 and above the national average of 46 days.
- Renter competition: The number of renters competing for a vacant apartment rose to 6 in Q2, up from 5 in Q1 but below the national level of 8.
- Occupancy rate: Wilmington’s apartment occupancy rate stood at 91.3% in Q2, down from 92.0% in Q1 and below the national rate of 93.3%.
- Lease renewals: The lease renewal rate in Wilmington was relatively stable at 60.5%, down slightly from 60.6% in Q1 and lower than the national rate of 62.4%.
Boom Goes The Dynamite: The slight cooldown in Wilmington’s rental market can be attributed to the recent boom in multi-family construction. Wilmington’s rate of new apartments entering the market was 1.30% in Q2, more than double the national rate of 0.61% and up from 1.26% in Q1. This influx of new units is helping to ease competitive pressures and increase availability for renters.
Bottom Line: The increase in available rental units is providing some relief to renters in Wilmington, reflected in the longer vacancy periods and lower competition for apartments. As the market adjusts to the new supply, renters may find more options and potentially more negotiating power in lease agreements. This trend also suggests a potential stabilization in rent prices, which could benefit the overall affordability in the region.
