Approximately how much turnover do multifamily properties see each year?

Approximately how much turnover do multifamily properties see each year?

• A. 25%
• B. 50%
• C. 75%
• D. 5%

Answer: (B)

Turnover in multifamily properties reflects how many units become vacant and are re-leased within a year. With typical one-year or near-annual lease cycles, many tenants move out when their leases end, while others stay and renew. On balance, about half of the units turn over each year, making roughly 50% a reasonable, widely used approximation. This turnover drives leasing costs, marketing, turnover repairs, and timing for re-leasing, all of which are key operating considerations. The other options are less representative: 25% would imply unusually high retention, 75% would indicate extraordinarily high churn, and 5% would suggest near-complete retention year after year, which is not typical in standard market conditions.

Turnover in multifamily properties reflects how many units become vacant and are re-leased within a year. With typical one-year or near-annual lease cycles, many tenants move out when their leases end, while others stay and renew. On balance, about half of the units turn over each year, making roughly 50% a reasonable, widely used approximation. This turnover drives leasing costs, marketing, turnover repairs, and timing for re-leasing, all of which are key operating considerations. The other options are less representative: 25% would imply unusually high retention, 75% would indicate extraordinarily high churn, and 5% would suggest near-complete retention year after year, which is not typical in standard market conditions.