What was cause of High Multifamily Vacancies during 2009

[MARK F.]

Here is the multifamily vacancy chart from data gathered and reported by the NAHB.

*in case chart doesn't display you can find it here...

http://www.nahb.org/generic.aspx?sectionID=238&genericContentID=149100

it is downloadable in an excel spreadsheet

The Multifamily Vacancy Index (MVI) measures multifamily housing industry's perception of vacancies on a scale of 1 - 100. Any reading above 50 would indicate increasing vacancies, likewise any reading below 50 would indicate declining vacancies. The MFI peaked in 2009 with a reading of 70.2 and has been falling like a rock ever since. For comparison Q3 2011 reading was 35.1.

I have just begun studying the multifamily industry and I would speculate the wave of foreclosures during the last recession would have forced people out of their homes and into rentals i.e. multifamily units.

According to the chart multifamily vacancies rose to a high level during the recession, and peaked in 2009.

Why?