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US Apartment Vacancies Reach 22-Year High
This week Bloomberg reported that with the conclusion of the second quarter, U.S. apartment vacancies haven risen to their highest level in 22 years.
Apartment vacancies grew to 7.5 percent, up from 6.1 percent this time last year, according to real estate research firm Reis Inc. This increase comes during a traditionally high leasing period, and is attributed to the high unemployment rate (which recorded a 26-year high this June at 9.5%) combined with the new units that came to market.
Twenty-two years ago, vacancies hit 7.6 percent as the Standard & Poor's 500 Index fell 23 percent during the last three months of 1987.
Compared to a year earlier, asking rents have fallen by 0.7 percent, and effective rents--the actual amount paid by tenants--have fallen by 1.9 percent to $975.
Some point to this data as counter-argument to the widely believed forecast that people will rent, rather than purchase homes, as home prices decline.
Read the full article at Bloomberg Real Estate.
Apartment vacancies grew to 7.5 percent, up from 6.1 percent this time last year, according to real estate research firm Reis Inc. This increase comes during a traditionally high leasing period, and is attributed to the high unemployment rate (which recorded a 26-year high this June at 9.5%) combined with the new units that came to market.
Twenty-two years ago, vacancies hit 7.6 percent as the Standard & Poor's 500 Index fell 23 percent during the last three months of 1987.
Compared to a year earlier, asking rents have fallen by 0.7 percent, and effective rents--the actual amount paid by tenants--have fallen by 1.9 percent to $975.
Some point to this data as counter-argument to the widely believed forecast that people will rent, rather than purchase homes, as home prices decline.
Read the full article at Bloomberg Real Estate.
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