Why More Renters Are Choosing to Stay Put Instead of Moving

Renters are increasingly choosing to stay put when their leases end, marking a significant shift in traditional renting patterns.

In major urban markets where historically about half of apartment dwellers would relocate at lease end, some of the largest landlords are now reporting turnover rates of just 30%.

This dramatic change reflects several converging factors affecting today’s rental market. The typical advantages of renting, flexibility to relocate, and lower costs compared to homeownership, are being weighed against new economic realities.

Why renters are renewing instead of moving

The housing market remains prohibitively expensive for many would-be buyers, keeping more people in rental units longer than they might have planned.

Even renters who’d normally upgrade to different rental properties are thinking twice about making moves.

Moving costs have become a significant deterrent. Between hiring movers, security deposits, application fees, and the physical effort involved, staying put often makes financial sense, especially when facing economic uncertainty.

For renters prioritizing financial stability, building a strong emergency fund can make staying put even more manageable. It cushions against unexpected expenses, from surprise repairs to job disruptions. SoFi Checking pays a competitive APY on savings, plus a cash bonus for new members who set up direct deposit. (May change without notice.)

Supply constraints and economic concerns

Particularly in coastal markets, rental supply remains tight. This scarcity makes finding comparable alternatives challenging, pushing more tenants toward renewing existing leases rather than facing a competitive market with limited options.

Many renters also express anxiety about broader economic conditions. Concerns about a potential recession, inflation, and employment stability make maintaining the housing status quo more attractive than introducing the uncertainty and costs of a move.

The suburban comfort factor

Another factor boosting renewal rates is the pandemic-driven migration toward suburban apartments. These units typically offer more space and amenities, making them comfortable for longer-term living.

Many renters who moved during COVID have grown accustomed to the extra space, quieter neighborhoods, and convenient amenities, reducing their motivation to relocate.

Analysts at the Urban Research Institute note that the shift to suburban living has created a more stable renter base.

Tenants who once prioritized proximity to downtown offices now value larger floor plans and access to outdoor spaces. For many, the comfort and convenience of these locations have made moving less appealing, even as remote work arrangements evolve.

Landlords reap the benefits

Property owners are benefiting significantly from this lower turnover trend. Renewals generate better pricing opportunities while simultaneously reducing expenses related to tenant turnover, such as repairs, painting, and cleaning between occupants.

The multifamily market has seen impressive absorption rates, with demand exceeding new construction completions for four consecutive quarters. This pushed the multifamily vacancy rate down to 4.8%, below the long-term average of 5%.

If you’re looking for ways to invest in real estate without becoming a landlord, platforms like Fundrise offer diversified real estate investments with as little as $10. Note: This is a testimonial in partnership with Fundrise. We earn a commission from partner links on moneytalksnews.com. All opinions are our own.

Market outlook improving

After experiencing rent declines last year due to record levels of new supply, the rental market appears to be rebounding. Rents increased 0.9% year over year in the first quarter of this year.

Activity in multifamily real estate investment is expected to increase as these improving fundamentals build investor confidence.

Regional variations show market complexity

West Coast markets are showing particular strength, with San Francisco and Seattle seeing rebounds driven by AI development and tech companies implementing return-to-office policies.

Meanwhile, Sunbelt markets that performed strongly during the pandemic may face challenges if a recession leads to job losses in those regions.

For renters, this decreased mobility likely means less negotiating leverage during renewal discussions. However, as the market stabilizes, it could eventually lead to more predictable rent increases rather than the dramatic jumps seen in recent years.

With housing markets shifting and economic uncertainty still a factor, it’s a smart time to review your broader financial plan. If you have over $100,000 in savings and want professional guidance on your next steps, SmartAsset offers a free service that matches you to a vetted, fiduciary advisor in less than 5 minutes.