Across the U.S., renters are holding onto their leases longer than ever before. Apartment resident turnover rates have hit historic lows, creating both challenges and opportunities for property managers, landlords, and investors.
A recent report from Multifamily Dive highlights the top reasons behind this shift, and the findings reveal how the rental market is evolving in 2025. Understanding these dynamics is essential for anyone managing multifamily properties or navigating today’s housing market.
So, why exactly are renters staying put? Let’s break it down.
1. Skyrocketing Homeownership Costs
One of the biggest factors keeping renters in place is the overwhelming cost of buying a home.
According to April data from Redfin:
-
The income needed to afford the median-priced home: $116,633 annually
-
The income needed to afford median rent: $64,160 annually
-
The actual U.S. median household income: $86,382
This affordability gap tells the story: for most households, renting remains the more realistic option. Many renters who once dreamed of buying a home are delaying or abandoning that goal altogether.
For property managers, this trend underscores a long-term demand for rentals and a need to provide strong renewal incentives to keep residents happy.
2. Lingering Economic Uncertainty
Beyond home prices, renters are also grappling with broader economic concerns. Inflation, shifting interest rates, and global market instability have left many people hesitant to make big financial moves.
Executives from major real estate investment trusts (REITs) note that this uncertainty drives people to “bunker down” rather than uproot their lives. Instead of risking higher rents elsewhere or exploring homeownership, many renters are choosing stability by staying in their current units.
This highlights an important opportunity: property managers who can position their communities as reliable, affordable, and consistent will be more likely to retain residents during uncertain times.
3. Centralized and Streamlined Renewal Strategies
The rise of centralized leasing and renewal operations is another key driver behind today’s low turnover rates.
Take Equity Residential (EQR) as an example. In Q1 2025, EQR reported a 7.9% turnover rate its lowest ever. The company credits much of this success to its centralized renewal strategies, which include:
-
Standardizing renewal processes across properties
-
Leveraging data to proactively reach out to residents
-
Offering flexible terms that make staying easier than leaving
This approach isn’t just improving retention it’s also strengthening occupancy rates and boosting revenue performance. For multifamily operators, it’s proof that smart, streamlined systems can directly influence resident behavior.
4. Industry-Wide Retention Improvements
It’s not just one or two companies seeing results. Resident retention is improving across the board, from large REITs to private operators.
-
Essex Property Trust reported a turnover rate of just 35%.
-
MAA saw turnover fall from 46% two years ago to 41.5% in Q1 2025.
-
Camden Property Trust posted an annualized net turnover rate of only 31%, among the lowest in its history.
These numbers highlight a broader trend: renters nationwide are more inclined to renew than relocate. For the industry, this creates a more stable rental base, reducing marketing and vacancy costs while improving operational predictability.
What This Means for Property Managers
The message is clear: retention is the new growth strategy. With renters staying longer, property managers and owners can shift focus from chasing new leases to strengthening resident relationships.
Some practical takeaways include:
-
Enhancing communication: Residents who feel heard are more likely to renew.
-
Proactive renewal offers: Approach tenants with attractive terms before they start looking elsewhere.
-
Maintenance efficiency: A well-maintained property signals reliability, which builds loyalty.
-
Value-add amenities: Even small improvements, like package lockers or digital payment systems, can boost satisfaction.
By doubling down on retention, operators can secure steady cash flow while reducing the costly churn associated with turnover.
Conclusion
The combination of rising homeownership costs, economic caution, centralized strategies, and industry-wide improvements has created an environment where renters are choosing stability over change.
For multifamily operators, this is both a challenge and an opportunity. Those who invest in long-term resident satisfaction through efficient systems, proactive communication, and thoughtful community building are best positioned to thrive in today’s rental landscape.
Source: 4 reasons renters are choosing to stay in place Multifamily Dive, June 2, 2025