Do vacancy rates go up during a downturn in the housing market?

[Aaron Moore]

I'm a first time buyer looking to make a move on a rental property. I'm trying to estimate my potential costs if the market were to go south.

[Evan Polaski]

@Aaron Moore a well maintained, stylish, fair priced property will have little vacancy in areas with diverse economic bases.

In a downturn, comparable to 2008-10, people were loosing jobs, going into foreclosure and vacancy rates dropped because more people became rentals.  However, if you local economy is tied to one employer, you will likely see a hard time renting if that employer closes down its plant.