RealPage data shows the average lease length for 2025 has reached a record 12.8 months. With declining renter mobility, aging demographics, and a favorable rent environment, more residents are locking in longer lease terms than ever before.
Despite 2 million jobs added in 2024, high-paying sectors lost 218,000 positions, according to BLS data. This split in job growth could pressure lease-ups for luxury apartments just as new supply peaks. Learn what’s driving the divergence—and what it means for housing operators and investors.
More renters are staying put. In Q1 2025, the national renter retention rate rose to 55.1%, a 1.7-point year-over-year increase. With mobility down and renewal rent growth outpacing new lease performance, this trend is playing out differently across Class A and Class C segments—especially in fast-growing Sun Belt metros.
New data from the Federal Reserve Bank of New York and Experian shows U.S. credit card debt climbing 57% since 2021 to $1.211 trillion. With delinquencies nearing 9% and interest rates above 23%, rising financial strain—especially among Gen X households—could affect renters’ ability to meet housing obligations.
As consumer sentiment declines, so does renter confidence in making financial moves. With economic uncertainty rising and inflation concerns top-of-mind, households may choose to stay put—especially at lease expiration. This hesitancy could impact revenue performance, particularly where renewal leases offer stronger returns than new move-ins.
