Apartment Vacancy Rate Hits Two-Decade Record

With this as a backdrop we looked at rental rates which a are a prime factor in evaluating a property. We clearly have a long way to go. The Dept of Commerce chart indicates we are at a fragile beginning of a recovery. The key to successful property ownership now will be to keep it occupied and ride this out.

Apartments.com Study

Rent reductions at a 22 year high

In the second quarter the vacancy rate of 7.6% was an increase of 1.5% YOY. Landlords have been facing rising opposition to rent rates agreed to during the boom years. Tenants everywhere are asking for and getting rent reductions. Rents are in decline in every market nationwide in the current quarter with three with marginal exceptions, Tampa, Kansas City and San Antonio.

According to an Apartments.com study: For the first time in six years, rents are down nationwide and vacancies are up.

1. Adding to this market pressure is competition felt from the shadow market or a surge of investor owned homes and condos that account for almost half of the rental stock, expanding the national rental supply.
2. Despite these recent obstacles, a national Apartments.com survey found that an overwhelming majority of renters are still looking for a new place to live this year and more than half are planning to pay the same or more in rent. (via Reuters). There is some further discussion on how to reducedays on market for empty units here