Why Is Finding an Apartment So Hard?

Searching for a new apartment can be a frustrating process, marked by rapid decisions and numerous hurdles. This difficulty is a widespread phenomenon affecting renters across the country. This article explores the factors contributing to the challenging environment for those seeking a new place to live.

Market Dynamics and Limited Availability

The current apartment market is shaped by an imbalance between the supply of rental units and sustained demand. A persistent low vacancy rate in many areas means fewer units are available, intensifying competition. This scarcity is compounded by the slow pace of new apartment construction, which struggles to keep up with population growth and housing demand.

Factors hindering development include high interest rates, escalating building costs, labor shortages, and complex local approval systems that extend project timelines. Additionally, some existing housing stock is converting from long-term rentals to short-term uses, further reducing inventory. The rise of platforms like Airbnb has led to millions of short-term rental listings in the U.S., impacting local markets by removing units from the long-term supply and pushing up prices. Population shifts and migration to desirable regions also exacerbate unit scarcity, as more people move into areas where housing supply is already constrained.

Escalating Costs and Financial Barriers

Beyond limited availability, the financial burden of securing an apartment is a significant hurdle. Rent prices nationwide show a consistent upward trend. While national rent growth moderated to about 0.8% to 0.9% year-over-year in 2024 and 2025, it surged by 18% in 2021 and 12.2% in 2022. As of July 2025, the average U.S. rent is around $1,637 to $1,639 per month.

This rise in rental costs occurs while many individuals face stagnant wages, making it difficult to keep pace with the overall cost of living. The disparity between wage growth and rising expenses, including housing, strains household budgets.

Renters also encounter substantial upfront costs, typically including the first month’s rent, a security deposit, and various application fees. Security deposits commonly range from one to two months’ rent, though some states allow up to three months, with the average U.S. security deposit around $700 to $1,980. Application fees, which cover screening costs, typically range from $25 to $100 and are often non-refundable.

Landlords frequently require prospective tenants to meet strict income-to-rent ratios, commonly stipulating that gross monthly income should be at least three times the monthly rent. For an apartment costing $1,500 per month, a renter would ideally need a gross monthly income of $4,500 to qualify, presenting a substantial financial barrier.

Heightened Competition and Application Scrutiny

Limited supply and rising costs create an intensely competitive environment for renters, with many applicants vying for a single apartment. This necessitates quick decision-making and a prepared application, as desirable properties are leased quickly. Landlords and property managers employ rigorous screening processes to evaluate potential tenants.

These criteria include credit checks, income verification, criminal background checks, and rental history assessments. Landlords review credit reports to gauge a prospective tenant’s financial responsibility, looking for a history of on-time payments and minimal debt, often preferring a credit score of 620 or higher.

Income verification requires pay stubs or employment letters to confirm an applicant meets the required income-to-rent ratio. Landlords also examine rental history reports, which reveal past addresses, payment timeliness, lease violations, or previous evictions.

Even minor issues, such as a single late payment or a less-than-perfect credit score, can lead to an application being rejected when landlords have numerous qualified applicants. The speed and thoroughness required in preparing a strong application mean hesitation can result in missing out on a desired unit.