Apartment Vacancies Decline in U.S. to Lowest Rate Since 2001
Apartment vacancies in the U.S. fell to their lowest level since 2001 as home seizures and a growing pool of young adults forming households boosted rental demand, according to Reis Inc. (REIS)
The vacancy rate fell to 4.9 percent in the first quarter from 6.2 percent a year earlier, the New York-based property- research company said in a report today. It was only the third time since Reis began gathering the data 31 years ago that the rate was less than 5 percent.
When vacancies drop below 5 percent, “effective rents tend to spike as landlords perceive that tight market conditions allow for greater pricing power,” Reis said in the report.
Effective rents, which take into account such landlord concessions as a free month, climbed almost 1 percent from the previous quarter to an average $1,018, the largest increase since the last recession began, according to Reis.
