{"id":183927,"date":"2025-07-21T16:37:19","date_gmt":"2025-07-21T22:37:19","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=183927"},"modified":"2025-07-21T16:37:22","modified_gmt":"2025-07-21T22:37:22","slug":"states-where-tenant-retention-is-highest","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/states-where-tenant-retention-is-highest","title":{"rendered":"Need a Steady Supply of Tenants? These States Have the Highest Retention Rates in the Country"},"content":{"rendered":"\n

There’s nothing more satisfying for a real estate investor than having a long-term tenant who is intent on staying put, surrounded by a community of friends and family, treating your house like their own. It reduces turnover, marketing costs, and repair expenses. Unfortunately, these nuggets of the residential investing business are not easy for landlords to find.<\/span><\/p>\n\n\n\n

But you can improve your chances by living in a state that residents never want to leave. Yes, they do exist! According to <\/span>2020-2021 IRS data<\/span><\/a> and a 2023 <\/span>United Van Lines National Movers Study<\/span><\/a>, as analyzed by<\/span> CheapInsurance.com<\/span><\/a>, several factors, including good weather, low property costs, and thriving economies, make “sticky states” great places for investors to park their money.<\/span><\/p>\n\n\n\n

In 2025, with rent growth slowing in many metropolitan areas and high borrowing costs squeezing investor margins, tenant retention has never been more critical. So here are the states where residents can never say goodbye.<\/span><\/p>\n\n\n\n

1. Texas<\/span><\/h2>\n\n\n\n

A sizable<\/span> 82% of native-born Texans still <\/span>live<\/span> in the state <\/span>as of 2021<\/span>, according to the <\/span>Federal Reserve Bank of Dallas<\/span><\/a>.<\/span> Texas’s one-two punch of economic vitality and tax efficiency has <\/span>found<\/span> residents <\/span>struggling<\/span> to find a reason to leave, <\/span>which has led to<\/span> a surge of new residents from<\/span> California and New York<\/span><\/a>.<\/span> Texas’s diverse job market, spanning energy, tech, and logistics, also keeps renters rooted. In Dallas particularly, <\/span>tenant demand remains robust<\/span><\/a>.<\/span><\/p>\n\n\n\n

The Federal Reserve Bank of Dallas found that economic growth in the state is partly <\/span>due to the fact that<\/span> many residents prefer to <\/span>stay put<\/span>. The <\/span>Texas Standard<\/span><\/a><\/em> found that culture, community, and affordability were also key factors in keeping residents in the Lone Star State. <\/span><\/p>\n\n\n\n

Investor insight<\/span><\/h3>\n\n\n\n

Landlords <\/span>might want to<\/span> consider the suburban markets of North Dallas, which are particularly <\/span>on a roll<\/span> and <\/span>expanding <\/span>outwards<\/span> into Oklahoma<\/span><\/a>.<\/span><\/p>\n\n\n\n

2. North Carolina<\/span><\/h2>\n\n\n\n

According to a <\/span>GoBankingRates migration report<\/span><\/a>, Raleigh is one of the top destinations for relocating families. However, it’s the locals who have anchored long-term demand. Rising rents and limited inventory have made renters less willing to relocate. The area’s<\/span> Research Triangle<\/span><\/a> has proven to be a growth engine for university-related employment. <\/span><\/p>\n\n\n\n

Investor insight<\/span><\/h3>\n\n\n\n

Long-term holds in Charlotte and Raleigh’s inner suburbs offer excellent appreciation potential with reduced risk of turnover.<\/span><\/p>\n\n\n\n

3. Georgia<\/span><\/h2>\n\n\n\n

Georgia boasts a peachy 74.2% stickiness rating, according to CheapInsurance.com. Atlanta, unsurprisingly, is the state’s powerhouse for residents and employment<\/span>, but other<\/span> markets, such as Savannah, Macon, and Athens, are also growing due to affordability and the appeal of small-city and historical area living.<\/span><\/p>\n\n\n\n

In February, Institutional investors advised by J.P. Morgan Asset Management, in partnership with the principals of Georgia Capital, <\/span>announced<\/span><\/a> the launch of Laseter Development Group, which will construct built-to-rent communities across the Southeast. One of the first investments will be a 165-unit apartment complex. The move shows the faith large financial institutions have in the state.<\/span><\/p>\n\n\n\n

Chad Tredway, head of Real Estate Americas at J.P. Morgan Asset Management, said in a press release:<\/span><\/p>\n\n\n\n

“This initiative underscores our strategic focus on the BTR asset class and reinforces our commitment to this high-conviction sector. Demographic shifts and job growth in the Sunbelt are driving increased demand for single-family housing. With Millennials seeking more space and housing prices at record highs, many are turning to rentals, fueling the growth of this sector.”<\/span><\/em><\/p>\n\n\n\n

Investor insight<\/span><\/h3>\n\n\n\n

The downturn in the Atlanta housing market has seen investors buying 65% fewer homes than they did at the peak of the pandemic, <\/span>according to Nick Gerli<\/span><\/a>, real estate analyst and CEO of Reventure. This trend\u2014driven by high interest rates, declining rents, and high insurance\u2014could play into the hands of investors looking for a deal. <\/span><\/p>\n\n\n\n

The Atlanta market had <\/span>been overheated<\/span>, but the city’s fundamentals, including business, tech, sports, entertainment, and more, remain intact. And, of course, residents from the ATL are proud of their hometown, with few prepared to leave. <\/span><\/p>\n\n\n\n

4. California<\/span><\/h2>\n\n\n\n

Given all the news about outward migration from California to states such as Texas, Nevada, and Florida, it’s hard to believe that the Sunshine State still retains 73% of its native born population. That’s in part because moving from rent-controlled apartments is ridiculously expensive, so it’s cheaper to stay put, especially if you live in San Francisco or Los Angeles, where a 2024<\/span> Redfin analysis<\/span><\/a> revealed that about 25% or more of tenants in both cities remained for a decade-plus. <\/span><\/p>\n\n\n\n

Investor insight<\/span><\/h3>\n\n\n\n

Recent changes to the state’s environmental laws<\/span><\/a> make it easier to develop in California. It’s also worth remembering that California is the<\/span> biggest economy in the U.S.<\/span><\/a> and the fourth-largest in the world, so demand for housing is extremely high. Investing here is always <\/span>liable to be<\/span> a good idea if you have deep enough pockets.<\/span><\/p>\n\n\n\n

5. Utah<\/span><\/h2>\n\n\n\n

Utah is quietly compelling to its residents, with a 72.9% retention rate, according to CheapInsurance.com. There’s already a built-in catchment regarding the state’s established Mormon community. <\/span><\/p>\n\n\n\n

However, the state is getting known for more than its religious reputation. <\/span>Areas like Salt Lake City and Provo are growing rapidly, supported by strong job bases in <\/span>tech<\/span>, finance, and healthcare, <\/span>and<\/span> a high quality of life, with outdoor sports popular.<\/span> <\/span><\/p>\n\n\n\n

According to <\/span>Rentastic<\/span><\/a>, job growth <\/span>is expected<\/span> to rise by 4.5% in 2025, and annual population growth <\/span>is projected<\/span> to be 1.9%, which the site says makes Utah “a magnet for real estate investors.” <\/span><\/p>\n\n\n\n

As a result, house prices have been increasing dramatically, forcing first-time homebuyers ou<\/span>t. <\/span><\/p>\n\n\n\n

Additionally, Utah has unique zoning laws that landlords must comply with. <\/span><\/p>\n\n\n\n

That said, all the metrics are positive, especially in booming major cities, which makes Utah a good place for long-term investments.<\/span><\/p>\n\n\n\n

Investor insight<\/span><\/h3>\n\n\n\n

The Utah market has <\/span>a lot of<\/span> moving parts. High prices mean buyers often can’t afford to get on the property ladder, making the market ripe for well-funded landlords.<\/span><\/p>\n\n\n\n

Final Thoughts<\/span><\/h2>\n\n\n\n

Not every city in a state is equal in terms of its retention rates, so <\/span>due diligence<\/span><\/a> is imperative. <\/span>Short-term rentals<\/span><\/a> are best suited to tourist hot spots, while you are liable to find longer-term tenants in economically stable areas with long-term job growth and employment.<\/span><\/p>\n\n\n\n

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October 5-7, 2025<\/strong> | Caesars Palace, Las Vegas\u00a0<\/strong>
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