BiggerPockets Daily
Renter Turnover Rates Fall—What it Means For Investors
May 12, 2025
Renter turnover rates are dropping as tenants opt to stay in their homes longer, benefiting landlords with better cash flow and reduced vacancies. Multifamily properties are regaining popularity among investors, with stabilizing rents and increasing demand projected through 2025. The podcast also delves into today's housing market challenges, such as high monthly payments and buyer hesitation, emphasizing the need for strategic investment in multifamily properties. Understanding local market dynamics and pricing strategies is key for potential investors.
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Quick takeaways
- Renter turnover rates have significantly fallen to around 30%, driven by high housing costs and limited rental options.
- The multifamily housing market is recovering with increasing rents and declining vacancy rates, presenting new opportunities for investors in 2025.
Deep dives
Trends in Rental Markets
Current renter behavior shows a significant decline in turnover rates, with some apartment REITs experiencing only 30% turnover compared to the historical average of 50%. Many renters are choosing to remain in their current residences due to high housing market prices and limited rental supply, particularly in coastal areas. Moving expenses are also contributing to this trend, with costs for services like U-Haul rentals becoming prohibitively expensive. As a result, renters are opting for larger, more livable apartments, which further stabilizes their choice to stay put.
