For years, renter turnover was considered a normal even expected part of the multifamily housing cycle. Tenants moved frequently, leases turned over annually, and property owners budgeted for vacancy loss and unit turnover costs as a cost of doing business.
But in 2025, that pattern is changing.
Across the U.S., renters are increasingly choosing to renew their leases and remain in their current homes, and this behavioral shift is quietly reshaping the multifamily market. While rent growth has slowed and new apartment supply continues to enter the market, higher lease renewal rates are providing a stabilizing force for property owners, operators, and investors alike.
According to industry data highlighted by Yield PRO, renter “staying power” is becoming one of the most important drivers of multifamily stability this year.
A Clear Shift in Renter Behavior
Historically, roughly half of renters in major metro areas chose not to renew their leases at expiration. Moving was common sometimes driven by lifestyle changes, job mobility, or the belief that relocating could lead to better value.
That assumption is now fading.
In 2025, approximately 70% of renters are renewing their leases, a significant increase from past norms. Instead of chasing marginal rent differences or newer amenities, many renters are prioritizing stability, predictability, and cost control.
This shift reflects broader economic realities. With inflation pressures lingering, wages growing unevenly, and household budgets under strain, renters are thinking more carefully before taking on the financial and logistical burden of moving.
The Numbers Behind the Trend
Industry data confirms that this isn’t anecdotal it’s measurable:
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Lease renewal rates are rising.
RealPage Analytics reported renewal rates reaching 52.3% in May 2025, while RentCafe recorded even higher figures earlier in the year at 63.1%, up from 61.5% in 2024. -
Rent increases on renewals are slowing.
While rents are still increasing on renewal, growth has decelerated for ten consecutive months, landing around 6.5% year-over-year in May. This moderation makes renewals more palatable for renters. -
Occupancy levels are improving.
U.S. apartment occupancy climbed to 95.7% in April 2025, marking the strongest spring improvement since 2010. Higher renewal rates are a major contributor to this gain.
Together, these metrics signal a market where renters are staying longer, vacancies are shrinking, and income streams are becoming more predictable.
Why Renters Are Choosing to Stay
Several forces are pushing renters toward lease renewals instead of relocation:
1. The True Cost of Moving
Moving isn’t just inconvenient it’s expensive. Application fees, security deposits, moving services, time off work, and utility transfers all add up. Even when base rent appears similar, the upfront cost of moving can easily outweigh perceived savings.
2. Homeownership Remains Out of Reach
High home prices and elevated interest rates continue to sideline many would-be buyers. For renters who once viewed renting as a short-term phase, leasing has become a longer-term reality making stability more valuable than flexibility.
3. Economic Uncertainty
With ongoing concerns about job security and broader economic conditions, renters are opting for known costs rather than risking financial disruption. Renewing a lease offers certainty in uncertain times.
4. Longer Initial Lease Terms
Renters signing longer leases are more likely to renew. In regions like the Northeast, average renter tenure now exceeds three years, pushing renewal rates toward 70%. Markets with more supply flexibility, such as parts of the South, still see slightly shorter stays but renewal rates remain elevated compared to historical norms.
What This Means for Multifamily Owners and Operators
For property owners, higher lease renewals are more than a feel-good metric they directly impact performance.
Lower Turnover Costs
Every move-out comes with expenses: unit turns, maintenance, cleaning, marketing, and leasing commissions. Fewer move-outs mean significant operational savings.
Stronger, More Predictable Cash Flow
Stable occupancy reduces income volatility. Even with modest rent growth, consistent renewals help smooth revenue and improve forecasting accuracy.
Improved Asset Stability
Properties with high retention rates are often viewed more favorably by lenders and investors. Predictable income streams and reduced vacancy risk can strengthen valuations and long-term asset performance.
Operational Focus Shifts
Rather than chasing new tenants aggressively, operators can focus more on resident satisfaction, service quality, and retention strategies, which often cost less than constant leasing efforts.
A Stabilizing Force in a Competitive Market
The multifamily industry is still navigating a challenging landscape: new construction deliveries, moderating rent growth, and shifting renter expectations. In that environment, renter staying power has emerged as a critical counterbalance.
Higher lease renewals don’t eliminate market pressures, but they soften volatility and provide a foundation for resilience. For owners and property managers, the message is clear: retaining residents is no longer just an operational goal it’s a strategic advantage.
Final Thoughts
The rise in lease renewals in 2025 reflects a broader transformation in how Americans view renting. What was once considered temporary is increasingly becoming long-term, and renters are responding by valuing stability over constant movement.
For the multifamily industry, this shift offers a rare bright spot one where renter behavior aligns with operational stability. As long as affordability challenges and economic uncertainty persist, renter staying power is likely to remain a defining feature of the market.
Source: Yield PRO – Staying power: rent renewals boost multihousing stability
https://yieldpro.com/2025/05/staying-power-renters-boost-multihousing-stability/