LUXER ONE BLOG

Rising Rents, Turnover, and Vacancy Rates: Navigating Multifamily Challenges in 2025

The economic pressures that dominated the multifamily housing landscape in 2024 are extending into 2025. Although rent growth has slowed in many areas, property managers are still grappling with high vacancy rates in certain markets, driven by oversupply and shifting demand. Meanwhile, resident turnover remains a persistent issue as renters continue to seek more affordable housing options amidst rising costs.

Recent reports reveal that nearly 51% of the top 100 metro areas saw rent declines in 2024. This trend has forced property managers to adopt more creative strategies to retain residents, such as offering attractive renewal incentives and prioritizing fee transparency. These efforts are critical to maintaining occupancy rates in a competitive and cost-sensitive market.

Increasing Resident Retention: A Top Priority

At the forefront of these efforts is the growing emphasis on resident retention. This was a central theme at Apartmentalize, the multifamily industry’s premier event, where experts and thought leaders highlighted the importance of bringing value to residents while adhering to tight budgets. In this environment, delivering meaningful benefits and cost-effective amenities has become essential to keeping residents satisfied and renewing their leases.

Budget-Friendly Solutions with Big Impact

One standout trend is the shift toward premium amenities that balance value and affordability. For example, companies like Luxer One, known for their innovative smart locker and package room solutions, are increasingly tailoring their offerings to meet the financial constraints of property managers.

Did you know, according to the 2024 renter study by NMHC, 67% of residents expect 24/7 secure self-serve package pick up to be available at their property? Of these residents, 70% prefer package lockers over other retrieval methods. Not only are they highly requested but these solutions address a critical pain point in today’s multifamily communities: the surge in package deliveries and the need for secure, convenient, and efficient management.

By implementing budget-conscious amenities such as package lockers, property managers can not only enhance the resident experience but also position their properties as forward-thinking and responsive to modern lifestyle demands. These types of investments pay dividends in the form of increased resident satisfaction and loyalty, ultimately improving retention rates.

Moving Forward in 2025

As economic pressures persist, the multifamily industry must continue to evolve. By focusing on resident retention, embracing transparency, and investing in cost-effective solutions, property managers can mitigate the challenges of rising rents, turnover, and vacancy rates.

By making strategic choices, property managers can navigate these uncertain times while providing residents with the value and experience they expect. The challenges of 2025 are significant, but with the right tools and mindset, they are far from insurmountable.

Forward-thinking companies like Luxer One are leading the charge, helping properties thrive in an increasingly complex market. Learn more about how their budget-friendly solutions can help you battle rising rents and vacancy rates when you contact us today.

Christina Draper

Christina Draper, Marketing Content Manager at Luxer One, creates storytelling-driven content that connects with property management professionals and highlights innovations in multifamily package management. With a marketing background from UNC Charlotte, she develops cross-channel campaigns that showcase how Luxer One is redefining the resident experience.

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A Familiar Face: How Luxer Liaison Adds a Human Touch to Package Management

Modern package management systems have transformed how communities handle deliveries. Smart lockers and centralized package rooms bring security, organization, and automation to an increasingly complex last-mile environment. But at larger communities, technology alone isn’t always enough to deliver the experience residents and onsite teams expect.
That’s where expert support for package management systems makes a meaningful difference.
At many Luxer One communities, that difference comes in the form of a familiar, trusted face. For one property, that person is Val: a Luxer Liaison whose presence has helped turn an already strong package system into a smoother, more human-centered experience.

The Growing Demand for Package Management in Multifamily Communities

The demand for package management has been steadily rising for years, but over the past twelve months, it has shifted from a convenience issue to an operational imperative. For property managers, owners, and developers alike, package volume is no longer a temporary side effect of peak ecommerce seasons. It is a permanent fixture of modern multifamily living.
Residents expect fast, secure delivery. Carriers expect efficient drop-off. On-site teams are expected to keep everything moving without adding labor or liability. As ecommerce behavior continues to evolve and staffing pressures remain tight, communities are being forced to rethink how they manage last-mile delivery at scale.
This is where multifamily package management solutions have moved from “nice-to-have” amenities to core infrastructure.

Value Messaging Is the Key to Preventing Long-Term Concessions in Multifamily

Concessions have become a familiar fixture across the multifamily landscape. As operators move through 2026, the question is no longer whether incentives belong in the leasing toolbox, but how to use them without sacrificing long-term revenue performance. This is where value messaging plays a critical role.
When concessions are paired with clear, consistent value messaging, they can support occupancy without resetting renter expectations. When they are not, they risk becoming a long-term drag on effective rents, renewals, and overall NOI. In today’s market, preventing long-term concessions is less about eliminating discounts altogether and more about ensuring price is never the only thing prospects remember.

The State of the Multifamily Market: Stability Is Returning, but Discipline Still Matters

After several years of volatility, the state of the multifamily market entering 2026 feels more predictable than it has since the early post-pandemic period. Rent growth has normalized, supply pressures are beginning to ease in many metros, and demand fundamentals are slowly strengthening. However, this is not a return to the high-growth environment operators experienced earlier in the decade.
Instead, the Q1 2026 outlook reflects a market where stability is returning, but performance depends heavily on operational discipline, cost control, and resident experience. Properties that adapt to this reality are finding steadier footing. Those that rely on outdated assumptions or inefficient systems may struggle to keep pace.
This Q1 2026 multifamily market report breakdown explores what the latest data is telling operators and what it means for day-to-day decision-making.

Smart Lockers for Asset Exchange and Package Management in the Modern Workplace

Workplace operations have changed dramatically in recent years. Hybrid schedules, distributed teams, and higher expectations for speed and accountability have reshaped how offices manage equipment, documents, and deliveries. As a result, many organizations are rethinking how assets move through the workplace.
That shift is driving increased demand for smart lockers for asset exchange and package management, a secure and automated solution designed to reduce loss, streamline workflows, and scale with enterprise operations. For workplace managers and operations directors, smart lockers are no longer a convenience. They are becoming a core infrastructure tool for the modern workplace.

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