A healthy supply of new apartments under construction or coming on the market is helping to give renters a break. Leasing is accelerating, but rent growth is slowing. 

Apartment completions are expected to rise to the highest levels since the 1980s in the second half of 2023 and early 2024, according to a new RealPage report. More than 500,000 a year are expected to complete across the country in each of the next two years. Construction is occurring in markets of all sizes and in all regions, giving renters more options.

This means that unlike 2021, when it was relatively easy to fill units and retain residents, operators are now focusing on customer service and automation to improve the resident experience and keep occupancy and retention high. Fortunately for operators, renter retention rates appear to be stabilizing again after a steep fall-off early in 2022. In May 2023, 52.3% of apartment renters with expiring leases signed renewals.