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News Flash? As Jobs Disappear, Apartment Vacancies Skyrocket
October 7, 2009 by Neil · 7 Comments
Apartment vacancies are at their peak since 1986, nearly kissing 8%, according to the latest report from REIS. The WSJ reported that more would-be renters are doubling up with family and friends, a point already discussed on this site. What makes this data more depressing is that the second and third quarters are supposed to be the most popular times of the year for tenants to move. Prospective tenants decided that that was not enough of a reason to move. As foreclosures rise, more shadow inventory hits the market, and unemployment increases (see here and here for the latest insights), vacancy rates will continue lurching into the heavens.
For those tracking this information in metropolitan NY, I’ve included these charts that break down the latest vacancy and rent increase trends for multifamilies since 2007.
As expected, they do inversely track, but Long Island data does so more noticeably.
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Check out what others are saying about this post...[...] jobs means, among other things, declining vacancies for apartment buildings and homes, fewer mortgage defaults, and increased values for real [...]
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[...] that mass quantities of plutonium would be discovered in the complex’ Oval Courtyard. In fact, NYC vacancy rates over the last few years have hovered between 2.5% and 3%, occasionally ve…Underwriters did not sufficiently factor into their spreadsheets the possibilities [...]
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