Raleigh’s Apartment Boom: Why Retention Beats Turnover

Intro:
Raleigh’s rental market is booming. New apartments are springing up across the Triangle, drawing in residents with modern amenities and competitive offers. In 2024 alone, the Raleigh-Durham area saw a 5.12% surge in new apartments – far above the national average of 2.59% – with Raleigh adding over 5,000 units. This growth is great for the region, but it also means fierce competition for tenants’ attention. For property owners and managers, one truth is becoming clear: keeping existing residents happy is often more profitable than constantly chasing new leases. In fact, lease renewal rates in Raleigh-Durham have been rising, up 1.6% year-over-year as more tenants choose to stay put for stability and savings. High resident turnover, on the other hand, quietly drains profits and time. Below, we explore why focusing on resident retention beats turnover – and how a retention-first approach can save your community money in the long run.

The Hidden Cost of High Turnover

Turnover is an expensive problem hiding in plain sight. Every time a resident moves out, the property incurs a wave of costs: lost rent during vacancy, marketing and concessions to attract new renters, maintenance and cleaning, and staff labor to coordinate it all. According to industry surveys, the average apartment turnover can cost anywhere from $1,500 up to $4,000 or more per unit. And those costs have been rising – one analysis found turnover expenses have more than doubled since 2020. This means each move-out isn’t just a minor inconvenience; it’s a significant hit to your net operating income. With vacant apartments taking longer to re-lease (46 days on average as of early 2024), every day a unit sits empty compounds the loss. High turnover also strains your team’s capacity – from extra administrative work to the physical demands of turning units. In short, when residents leave, communities pay the price in both dollars and staff effort.

Raleigh’s Competitive Market Raises the Stakes

In a high-growth market like Raleigh, turnover stings even more. With so many new developments, renters have endless options. If a community can’t keep its current residents satisfied, there’s likely a brand-new property down the road ready to lure them away. The Triangle’s rapid apartment growth is a double-edged sword: it brings in more residents, but it also means your property must work harder to stand out and retain those residents. Additionally, the region experiences seasonal rental patterns – turnover tends to spike during the spring and summer months when moving is easier and leases often expire. This seasonal rush (often peaking in Q3) can leave properties scrambling to fill a slew of vacancies all at once. For owners, a high mid-year turnover means unexpected budget pressure and the risk of missing annual income targets. The most forward-thinking operators in Raleigh and Durham recognize that retention is their safety net. By keeping the “back door” closed (i.e. residents renewing leases), any new leases you sign become true net growth rather than just replacing those you lost.

Retention: A High-ROI Strategy

Focusing on resident retention isn’t just a feel-good strategy – it directly boosts the bottom line. Consider this: **each lease renewal represents roughly $4,000 saved in turn costs and lost rent on average. Multiply that across a portfolio, and the savings are substantial. Keeping an existing resident not only spares you the turnover expense, it often means you can achieve steady rent growth (even modest increases) without the revenue dip of vacancy. Residents who stay also tend to take better care of their homes over time, reducing excessive wear-and-tear costs. Beyond the immediate dollars, there are long-term financial benefits to a stable community: satisfied residents leave better reviews and refer friends, lifting your property’s reputation and demand. It’s no wonder that even as supply hit record levels nationwide, operators have pivoted to prioritize retention, driving renewal rates above 54% nationally in late 2024. The math is simple: when keeping the right resident is more profitable than finding a new one, retention efforts become an investment with measurable return.

Shifting to a Retention-First Mindset

Cultivating resident loyalty requires a proactive, retention-first mindset at both the corporate and site level. This means viewing every resident interaction – from maintenance response to community events – through the lens of “Will this make someone want to renew their lease?” In practical terms, successful Raleigh-area properties are implementing initiatives like early renewal outreach, enhanced resident communication, and community-building activities aimed at strengthening ties. Strong resident engagement is proven to reduce skips and late payments even in soft markets, because a resident who feels at home is less likely to risk losing that. It’s about closing the back door by addressing issues before a renter decides to give notice. For example, rather than waiting until a 60-day notice arrives, some properties now begin renewal conversations 3+ months in advance and offer incentives for loyalty. The goal is to make staying the convenient, appealing choice for residents.

From Events to Culture: PureStay’s Retention Approach

One innovative approach gaining traction in the Triangle is offered by PureStay, a company positioning itself not as an event vendor but as a comprehensive retention system and tenant culture builder. PureStay’s model recognizes that fancy one-off events alone don’t guarantee renewals – what matters is consistent, positive resident experiences that build a sense of community. With PureStay, property teams get a fully hands-free program that handles planning and executing resident engagement activities with zero stress on onsite staff. Everything is done to a professional standard, on a reliable schedule, so that engagement isn’t sporadic but part of the property’s fabric. This structured approach means residents see ongoing evidence that their community cares about them, not just during lease signing or renewal time. The focus is on retention first: events and initiatives are designed specifically to increase resident satisfaction and connections (which, as studies show, directly influence renewal decisions). By outsourcing the heavy lifting to a specialized retention partner, overworked property managers in Raleigh can ensure a vibrant resident culture without stretching their teams thin.

Conclusion:
Raleigh’s growth isn’t slowing down – and neither is competition for quality renters. In this environment, high-trust, retention-focused strategies are a wise investment for property stakeholders. Reducing turnover isn’t just about cutting costs; it’s about fostering loyal communities where residents want to stay year after year. By acknowledging the true cost of turnover and embracing a retention-first approach, Raleigh, Durham, and Cary apartment operators can protect their NOI, improve resident satisfaction, and thrive even in a crowded market. In the end, the communities that win will be those known not just for attracting tenants, but for keeping them.