Operators in the Sun Belt may be breathing a sigh of relief that supply is finally burning off and new competition is stabilizing in their markets. However, just as this is happening, consumer confidence is plummeting to unprecedented levels, according to The Index of Consumer Sentiment published by the University of Michigan.
So, even as apartment fundamentals improve and supply burns off, renters are behaving more cautiously because of inflation and broader economic uncertainty.
“We are seeing some degree of hesitation, particularly in decision-making initiatives,” said Marcie Williams, chief strategy officer at The Bainbridge Cos. “Prospective renters are more deliberate, taking longer to tour and comparing options as they finalize their decision.”
CAPREIT’s Chief Operating Officer and Chief Transformation Officer Savas Karas said renters are clearly taking more time before committing to a lease.
“Leasing times are increased, as are the number of tours per lease,” Karas said. “Renters seem to be touring more often and taking more time to decide where to live.”
Tim Bruss, managing director of asset management for Hamilton Zanze, said affordability concerns are playing a major role in renter behavior.
“Renters are being a little more careful right now,” Bruss said. “Inflationary aspects can make renters more reluctant to sign that lease at a nicer place for an extra $200 or something similar, because there is so much uncertainty.”
At the same time, many firms noted that demand itself has not disappeared.
“In the Charlotte and broader North Carolina markets, strong employment growth and continued corporate relocations have helped maintain steady renter demand despite broader economic concerns,” said Stephanie Garris, director and head of North Carolina at Arqline. “Renters are being more selective and value-driven rather than pulling back from moving altogether.”
Kari Warren, chief operating officer of property management at Kairoi Residential, said operators are increasingly segmenting renters based on financial flexibility and expectations.
“Renters with the means to choose will still choose the community where they feel genuinely valued and well-served, and they are willing to pay for it,” Warren said. “Operators applying the same strategy to both groups are missing out.”
Retention, customer service become key differentiators
As competition remains intense and renters grow more cautious, resident retention has become one of the industry’s most important priorities, according to Tammy Freiling, chief financial officer of property management at Kairoi Residential.
“At Kairoi, our goal is to invest in the resident relationship deeply enough that staying feels like the obvious choice, even when the market is offering alternatives,” Freiling said.
Several firms said retaining residents is often more cost-effective than competing aggressively for new leases.
“One of the most effective strategies this year has been really concentrating on the resident experience from the initial prospect contact all the way through the leasing process and residency,” Garris said. “Prospects are getting contacted by multiple communities, so standing out is critical.”
At Bainbridge, Williams noted the company is emphasizing operational efficiency and artificial intelligence tools to support leasing teams.
“We’re placing a strong emphasis on AI to empower our teams to focus on what they do best, which is delivering exceptional customer service while reducing the time spent on repetitive, low-value tasks,” Williams said.
Mill Creek Residential focused heavily on preparation ahead of peak leasing season, according to Stephen Prochnow, executive vice president of property management.
“We moved non-essential initiatives outside of the peak leasing window so teams could stay focused,” Prochnow said. “The preparation we put in earlier is showing up in the results now.”
These industry-wide retention efforts seem to be paying off, with renewal pricing improving in many portfolios as residents increasingly opt against moving costs.
“Renewal rates have strengthened in 2026, and we are seeing residents display greater intent to stay in place,” Williams said. “Residents are prioritizing customer service, value and predictability in their housing costs.”
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