Why is renter turnover stayed so low, even when homes were flying off the market??

Why has renter turnover stayed so low, even when homes were flying off the market? Could it be that we’re in a new normal of lower turnover? I covered this in depth on the podcast, but here’s the quick version:

Retention is up across the board. Apartments have held steady at 52-58% retention, about 3% higher than pre-COVID. Single-family rentals? Turnover used to be mid-30%. Now? Mid-20%. This is happening in every class, every market.

Better resident engagement. When property managers couldn’t see residents in person during COVID, they got creative. Turns out, treating people better actually works. Who knew?

Tech makes renewing easier. Remember getting a renewal packet taped to your door? Good times. Now, seamless online renewals mean fewer people move just because of paperwork headaches.

Buying is expensive. The rent vs. buy gap is huge, $1,600/month for apartment renters, $1,000/month for SFR. But retention was already climbing before homeownership costs exploded.

Low consumer confidence = less movement. When people aren’t sure what’s next, they freeze. And frozen renters? They renew instead of rolling the dice on a move.

So, will turnover stay low long-term? I’m starting to think so, even if home sales heat back up.