From CNBC: 2025-05-09 11:54:00

Renting benefits include affordability and flexibility, leading to typically high turnover rates. However, low turnover is currently notable in the rental market, with some major landlords experiencing just 30% turnover compared to the industry norm of 50%. Reasons cited include market conditions, moving costs, and a shift towards more comfortable suburban apartments.

This reduced turnover is benefiting landlords through improved cash flow and lower turnover costs, such as repairs and cleaning. Real estate analyst Alex Goldfarb recommends multifamily REITs like Essex Property Trust and Equity Residential, particularly in West Coast markets like San Francisco and Seattle, which are seeing a rebound due to tech companies like Amazon returning to office mandates.

While Sunbelt markets like Camden Property Trust and Mid-America Apartment Communities performed well in the first quarter, they may face challenges if a recession leads to job losses. Overall, the multifamily market is experiencing a recovery with rents up 0.9% year over year in the first quarter, driven by strong demand and decreased vacancy rates below the long-term average. This positive trend is expected to boost investment activity in 2025.



Read more at CNBC: Something ‘striking’ is happening with apartment renters