Apartment Retention Rates Surge

The ratio of U.S. apartment renters renewing their leases has climbed in the last year. Just over 54% of renters in market-rate apartments renewed their leases in the year-ending October 2024, which was a 120 basis point (bps) climb over last year, according to RealPage Market Analytics.

Operators have pivoted to focus on retention in the last 24 months as supply levels continue to reach record levels across much of the nation, resulting in above average retention rates. Keeping existing residents in place by renewing leases is what some refer to as keeping the “back door” closed, which allows all new leases signed (or “front door” traffic) to act as net absorption of units occupied.

Renewal rates are calculated on a trailing 12-month basis to eliminate seasonality as renewals typically go up during the summer when a higher proportion of leases (new and renewal) are signed...
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RSK: Renters cannot afford to buy at the moment so they need to renew leases and avoid moving costs. New persons coming into the market need to rent as well driving costs of rent even higher. New construction is between 15% to 20% higher and so the circle spins.