Blah Blah Blah: What's Really Driving Today's Record-Low Renter Turnover

Sometimes, operational excellence in multifamily property management is hidden behind casual dismissals—"blah, blah, blah." A perfect example came from a recent exchange during UDR's earnings call, captured perfectly by housing economist Jay Parsons on X:

Analyst: "On the topic of turnover, this has been a recurring theme for you and for others over the past several years—of declining turnover numbers. And I'm wondering, besides the fact that you're awesome operators, blah, blah, blah … What is happening outside of that, that's encouraging (low) turnover?"

Tom Toomey, CEO of UDR (Q1 2024 Earnings Call, April 29, 2024): "I'll make sure to pass it on to the rest of the operating team that they're really good at 'blah, blah, blah.' But in all seriousness … we set out to change how the industry does the business, and it shows up in a lot of different metrics."

Analyst: "I don’t mean to trivialize the extraordinary operating. I just wanted to get to my question."

Tom Toomey: "It's inspirational for them."

Toomey’s tongue-in-cheek response underscores an important truth: operational excellence often gets minimized by easy shorthand. Beneath those casual "blah, blah, blahs" lies intentional, rigorous effort that profoundly impacts renter retention and operational performance.

The Quiet Revolution in Renter Retention

Historically, roughly half of apartment renters in large urban markets move each year. But now, major multifamily operators are seeing turnover plunge to unprecedented lows—as little as 30%, according to Alex Goldfarb, a real estate analyst at Piper Sandler. This isn't a random fluctuation—it's a trend driven by a mix of strategic moves, technological advancements, and shifting market conditions.

The Macro Context: Why Fewer Renters Are Moving

While property managers deserve significant credit, broader market dynamics also play a powerful role in today’s low turnover environment. Renters face multiple headwinds that discourage mobility:

• High moving costs make relocation financially burdensome.

• Homeownership is out of reach for many due to elevated mortgage rates and rising home prices.

• Limited rental supply in many urban and coastal markets leaves renters with fewer appealing alternatives.

• Economic uncertainty has made many residents hesitant to make big changes, especially those involving new financial commitments or job relocations.

These macro conditions have created a backdrop in which staying put is often the easiest—and most sensible—choice.

Digital Transformation: The Amazonification Effect

The pandemic accelerated digital transformation across all industries, and property management was no exception. Today’s renters increasingly prefer—and expect—instant digital solutions for transactional tasks, like handling maintenance requests, paying rent, or managing lease questions.

This transformation has been dubbed the "Amazonification" of resident experience. Property management teams quickly adapted by enhancing digital platforms and apps, significantly improving renter satisfaction by reducing friction and waiting times. These digital efficiencies free up property managers to focus more closely on tasks requiring human judgment and interpersonal skills—leasing apartments and handling complex resident issues.

Back to Basics: The Small Things Matter

As competition intensified due to record levels of new apartment supply, many multifamily operators embraced a "back to basics" approach. While it might sound simple, the execution requires disciplined focus and ongoing measurement. Teams are prioritizing:

• Rapid resolution of maintenance tickets

• Thorough follow-ups with prospective renters

• Regular and meticulous landscaping

• Rigorous staff training

These fundamentals are now precisely measured through key performance indicators (KPIs) and resident satisfaction scores such as ORA and Net Promoter Score (NPS). By doubling down on basics, property managers have elevated the everyday resident experience, contributing directly to higher renewal rates.

Centralized Renewals: Removing Friction, Enhancing Retention

Another major change—highlighted by Equity Residential’s Michael Manelis during their earnings call—is the centralization of lease renewals. Previously, renewals were cumbersome: printed packets, mailed documents, multiple follow-ups, and manual corrections.

Today, lease renewals have become streamlined digital interactions. Renters receive renewals via email, text, or through property apps, and specialized teams handle the follow-up efficiently and systematically. When rent increases are modest, the reduced friction means renters often opt to renew rather than seek out new housing.

Financial and Market Impact

This improved retention isn’t just beneficial for residents—it has significant financial implications for property operators. Analyst Alex Goldfarb underscores this point clearly:

"The consequence is landlords are getting better pricing from renewals, as people don’t want to leave. It also improves [their] cash flow, because of lower turnover costs."

Lower turnover directly reduces expenses related to unit repairs, repainting, cleaning, and leasing commissions.

Moreover, market conditions have reinforced these operational improvements. Economic uncertainty, elevated mortgage rates, high moving costs, and limited affordable housing options further encourage renters to remain where they are.

The Bigger Picture: A Multifamily Turning Point

The multifamily market has rebounded strongly, marked by positive net absorption—the highest first-quarter rate since 2000, according to CBRE. Vacancy rates have fallen to 4.8%, below the long-term average, signaling strengthened market fundamentals.

Kelli Carhart of CBRE summed it up:

"The first drop in vacant units in more than two years signals a crucial turning point in the multifamily sector. This boost will lead to increased investment activity as improving fundamentals drive investor confidence."

Beyond the "Blah Blah Blah"

Tom Toomey’s humorous exchange reminds us that operational excellence isn't trivial—even if it sounds repetitive or easy to gloss over. Multifamily property managers aren't just "really good at blah, blah, blah"; they're quietly transforming their industry, profoundly reshaping renter retention along the way.

Inspired by: Insights from Jay Parsons (@jayparsons) on X and reporting by CNBC’s Diana Olick in "Renters are staying put, and it’s helping landlords boost profits", published May 9, 2025.