survey: Apartment vacancies no longer caused primarily by bad economy

A recent survey by reflects improvement in the nation’s unemployment rate.

The latest Property Manager Survey from offers some interesting tidbits about the strength of the national economy: First, apartment vacancies today are no longer being driven primarily by job losses. Secondly, landlords feel comfortable enough in the national economy to continue raising rents at their apartment communities.

According to the survey, the main reason for apartment vacancies today is no longer unemployment. Instead, consumers are buying homes and relocating to new cities in greater numbers, and this has become the main reason for vacancies in apartment communities across the country.

This is a welcome change from two years ago. Back then, job losses were the main reason for apartment vacancies. Since 2010, though, the number of property managers pointing to job loss as a primary driver of vacancy rates has fallen by 30 percentage points.

As the survey says, this makes sense. Back in August of 2012, the national unemployment rate stood at 9.6 percent. By September of this year, it had fallen to 7.8 percent.

When it comes to rents, there’s more good news for landlords. According to the survey, 62.6 percent of landlords said that rents would rise during the next 12 months. A total of 72.3 percent of property managers said that they are planning to increase rental rates at their properties during this period.

— Dan Rafter

This entry was posted in multi-family, national commercial real estate and tagged , , , . Bookmark the permalink.

2 Responses to survey: Apartment vacancies no longer caused primarily by bad economy

  1. Rob Gordon says:

    Have you seen ? Take a look to find your next rental

  2. elliot liebson says:

    An interesting question then, is how the vacancy rate of apartment units is trending nationally; if rents are increasing, unemployment decreasing, and the housing market (slowly!) coming back to life, that would suggest the overall vacancy rate should start increasing. Is this in fact occurring?

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s