Resident retention remains strong as mortgage costs far outpace rent RICHARDSON, Texas–(BUSINESS WIRE)–RealPage®, a leading global provider of AI-driven software platforms to the real estate industry, today released its third quarter 2025 analysis of the multifamily housing sector. During the quarter, the average advertised rent price decreased for only the second time since 2009. RealPage data also shows that home values have risen at twice the pace of market-rate rental units since 2020, pushing the typical mortgage payment well above the nation’s average rent and keeping many households in the rental market longer. “Resident retention has increased and is approaching an all-time high as the current cost of renting is significantly less expensive than homeownership,” said Carl Whitaker, chief economist at RealPage. “With residents staying put longer, owners and operators have an opportunity to create an even higher-quality resident experience and build a stronger sense of community at their properties.” Q3 Industry Takeaways
Occupancy backtracked quarter-over-quarter to 95.4% Rents are down nearly 8% in Denver and Austin and a little more than 5% in Phoenix. The South region has added a quarter of a million units in the past 12 months (more than twice the second-fastest growing West region). As such, rents are down 1.7% in the past 12 months in the South while the West saw rents fall 0.4%. Conversely, the Midwest & Northeast regions have seen rents grow 2.3% and 1.9%, respectively. San Francisco’s 7.1% rent growth in the past 12 months is far ahead of second-ranking Chicago (4.5%).
“According to RealPage data, the outlook for the U.S. apartment market in the next 12 months is that supply will cool considerably from its current level,” added Whitaker. Q4 Industry Outlook
Nationwide, supply is starting to cool with 105,000 units delivered in the third quarter, which is the fewest since the second quarter…