Apartment Vacancies Reach 10-Year Low
Fourth quarter vacancy rates are at a decade low. The tight rental market has led to rent increases nationwide with markets in San Francisco and San Jose experiencing the greatest jump. A rebounding tech industry also drove higher rents in Austin, Texas and Chattanooga, Tennessee.
Although New York made the list, ranking fifth-highest for rent increases highlights the effects of a wounded financial sector and market with existing high rents already close to their limit.
In response to rising foreclosures and stringent mortgage standards developers and families turned to the rental market as a solution. New rental units are expected to relieve the tight vacancy market, specifically on the west coast within the next year. Despite optimistic reports of multifamily construction rebounding, only 38,000 new units were built last year representing an all-time low in the last thirty years.
Thanks to Elaine Mahoney