Apartment Turnover is Falling—But Not for the Reasons You Think

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I came across an insightful LinkedIn post highlighting a striking trend in the multifamily market—renter turnover has hit record lows.

During Equity Residential’s recent earnings call, COO Michael Manelis revealed that the company’s 2024 renter turnover rate was just 42.5%—the lowest in its 30-year history. This isn’t just an EQR phenomenon—it’s an industry-wide trend that seems counterintuitive given last year’s surge in new apartment supply.

So, what’s driving this shift?

• Renewal Retention is the New Leasing Priority Property managers have made renter retention a top focus, knowing that keeping existing residents is just as critical as filling new vacancies.

• Renters Are Still Paying More to Stay While renewal rent increases have moderated, they’re still rising. Many renters are choosing to stay put rather than navigate the cost and hassle of moving.

• The "Stuck" Homebuyer Effect Isn’t the Full Story While some would-be buyers remain in apartments, the bigger trend is renters shifting to single-family rentals rather than buying homes.

• Frictional Costs & Online Renewals Make Staying Easier With modest renewal rent hikes (2-5% in most cases) and the ease of online lease renewals, many renters are opting for convenience over searching for a better deal.

With more REITs set to report earnings soon, I expect to see similar themes across the industry. The bottom line? Retention is now a key driver of multifamily performance.

I’d love to hear your thoughts—are you seeing the same trend in your market?