RealPage®, a global leader in AI-driven software for the real estate industry, has released its third quarter 2025 analysis of the multifamily housing market, highlighting a shift in rental dynamics despite cooling demand. For the first time since 2009, the average advertised rent price declined during the quarter—marking only the second such drop in over 15 years. Despite this dip in rent growth, resident retention has reached near-record levels. According to Carl Whitaker, RealPage’s chief economist, this trend is driven by the growing affordability of renting compared to homeownership. Since 2020, home values have risen at twice the rate of market-rate rental units, pushing the typical mortgage payment significantly above the national average rent. As a result, many households are choosing to stay in rental units longer, contributing to stronger retention. “Resident retention has increased and is approaching an all-time high as the current cost of renting is significantly less expensive than homeownership,” Whitaker said. “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.” Looking ahead, RealPage anticipates that apartment supply will cool substantially over the next 12 months, which could help stabilize the market. Importantly, current trends differ from past economic downturns, where both retention and new lease activity typically declined. Instead, strong retention combined with ongoing interest in new leases suggests that demand for market-rate apartments remains resilient. RealPage believes that sustained high retention could lead to improved market momentum and a more optimistic outlook for the multifamily sector in 2026. The company’s analysis underscores the importance of enhancing resident experience and operational efficiency to maintain competitive advantage. For a deeper dive into these trends and RealPage’s 2026 market forecast, viewers are encouraged to watch the Q3 Apartment Market webcast replay at https://www.realpage.com/webcasts/market-intelligence-us-multifamily-update-q4-2025/. Those seeking ongoing insights can subscribe to the RealPage Analytics Newsletter for weekly market data and expert commentary at https://www.realpage.com/analytics/subscribe/. RealPage, founded in 1998 and headquartered in Richardson, Texas, is a leading provider of AI-powered platforms for the real estate industry. The company’s Lumina AI™ Workforce, the multifamily sector’s first agentic AI platform, integrates intelligent agents across leasing, operations, finance, facilities, and resident engagement to drive efficiency and yield. With operations across North America, Europe, and Asia, RealPage serves more than 24 million rental units. In 2024–2025, the company was recognized as one of America’s Best Employers by Forbes, one of America’s Best Employers for Women, and one of America’s Greatest Workplaces for Women and Parents and Families by Newsweek. It has also earned Great Place to Work™ certification in the U.S., UK, India, and the Philippines. RealPage’s resident experience platform, LOFT, was named Property Management Solution of the Year and received Gold in the TITAN Innovation Awards.