Apartment Lease Renewals Hit Historic High

Over half of U.S. apartment renters chose to renew expiring leases in February 2015. According to MPF Research, apartment lease renewal conversion reached 54.5% last month — the highest rate in a decade.

Renewal rates have increased steadily since the multifamily market began to recover in early 2010. Low turnover in the face of plentiful new supply and climbing rents indicates that demand is high and renters have not yet reached a budget ceiling.

MPF Research expects renewal conversion rates to level off as the improving economy leads to increased job mobility and lifestyle changes. However, apartment operators may be more willing to increase rents on new leases, increasing overall rent growth.

Read more at Property Management Insider