4 California cities rank among ‘highly competitive’ rental markets. Here’s where
Renting can mean high prices and limited options — especially in California.
According to Apartments.com, one of the nation’s largest online rental marketplaces, four California cities rank among the most competitive rental markets in the country for 2025.
“In competitive cities, you’ll face high rent prices, quick turnaround times, and low availability,” the company said in a Jan. 7 article titled “The Most Competitive Rental Markets in 2025.”
However, Apartments.com said, renters can find the right home — even in tight markets — if they “are prepared and employ helpful strategies.”
Here’s a look at the California cities that made the list for 2025:
Which California city has the most competitive rental market?
Apartments.com ranked San Francisco as the most competitive rental market in the country for 2025.
“In highly competitive cities, renters face high rents, limited apartments and the pressure to jump on availabilities,” the company said. “Understanding this landscape allows renters to set realistic expectations and tailor their search strategy to land a rental they love.”
Apartments.com said San Francisco’s surge in competitiveness is due to the artificial intelligence boom — which brought renters back to the city, drove down vacancy rates and pushed rents sharply higher.
The average monthly rent in San Francisco was roughly $3,158 per month in 2025, nearly double the nationwide monthly average of about $1,623., according to the report. The Bay Area city saw a 6.3% increase year over year.
Construction in San Francisco has struggled to keep pace with demand, Apartments.com said, contributing to a tight market that continues today.
The city’s vacancy rate was 5% in 2025, down 2% from the year before.
“Many renters stay renters as high mortgage rates and a lack of single-family homes pose homeownership challenges,” Apartments.com said.
How much is rent in San Jose? Anaheim?
Santa Ana was the fifth-most competitive rental market in the country in 2025, according to Apartments.com.
The average rent in Santa Ana was $2,222 a month, an increase of 2.1% year over year, the study found.
“Santa Ana, and the encompassing Orange County, is a hotspot for renters,” Apartments.com said. “The city has seen consistent population growth, which the rental market inventory has not been able to expand quickly enough to match.”
As a result, Santa Ana saw one of the largest drops in vacancy rates among top rental markets. In 2025, the vacancy rate was 4%, down 3% from the previous year.
San Jose was ranked sixth on the list.
“San Jose experienced the same growth and competition due to the AI boom as San Francisco,” Apartments.com said. “Renters flocked to the area, quickly outpacing the available supply of apartments.”
The average rent in San Jose was $2,631 per month, a 2.3% increase year over year.
“High home prices and mortgage rates reinforced rental demand while professional opportunities, especially in the tech and AI sectors, reenergized the economy and job market,” Apartments.com said.
The vacancy rate in San Jose was 4% in 2025, down 1% from 2024.
Anaheim was the lowest ranked California city on Apartments.com’s list of the the most competitive rental markets in 2025,” taking 10th place.
“Anaheim is just as popular and competitive as Santa Ana, the other Orange County city on the list,” Apartments.com said. “Its competitiveness is largely caused by strong demand and limited supply.”
The average rent in Anaheim was $2,104 per month in 2025, an increase of 1.2% compared to the previous year.
The vacancy rate in Anaheim was 4% in 2025. That was a decrease of 1% from 2024.
“Houses in Anaheim are more expensive than in Santa Ana, leading to a stronger push toward renting,” Apartments.com said. “This doesn’t deter people from moving to Anaheim as the city has a strong job market, great quality of life, beautiful climate and active lifestyle.”
Looking for an apartment? Follow these tips
Though finding an apartment in a competitive market can be a challenge, there are some ways to improve your chances, according to Apartments.com.
This includes taking multiple rental tours and asking the right questions about the rental.
The website also recommends making a good impression on a landlord by having documents and funds ready, and staying flexible about move-in dates and lease terms.
Where are the toughest US cities to find an apartment?
According to Apartments.com, these were the top 10 most competitive rental markets in the United States in 2025:
- 1. San Francisco
- 2. Milwaukee
- 3. New York
- 4. Chicago
- 5. Santa Ana
- 6. San Jose
- 7. Minneapolis
- 8. Seattle
- 9. Reno, Nevada
- 10. Anaheim
How did Apartments.com come up with its findings?
To determine the most competitive rental markets in 2025, Apartments.com looked at several key factors that show how tough it is to find an apartment, including average rent prices and vacancy rates.
“Each metric was weighted based on its impact on market competitiveness,” the company said.
Cities were ranked according to how they scored across these factors to capture current market conditions and how they’ve changed over time.
