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APARTMENT VACANCY RATE HITS 30-YEAR HIGH!

By Mark L. Ostrovsky

Real Estate Agent with Howard Hanna Real Estate Services

January 11, 2010 01:06 PM

Real estate research firm Reis, Inc. reports that apartment vacancies rose to 8-percent in the last quarter of 2009. As a result many large apartment complex owners have been forced to reduce rents. One year ago the vacancy rate was 6.7%. The blame for the recent downturn goes to the recession and to job losses and/or fear of job loss,

Apartment Vacancy Rates Hit 30-year High.

Resi has been tracking apartment vacancy rates for 30 years and an eight-percent rate is the highest on record.

That being said, the MLS in Northeast Ohio's eastern suburbs is not exactly flooded with rentals. There are only 5 listed in Beachwood, 32 in Shaker Heights and 31 in Cleveland Heights. More than a few of these rentals are single family homes and not apartments. Many apartment building owners do not list their rentals in Northeastern Ohio on the MLS.

For more on this story follow this link:

http://www.reuters.com/article/idUSN0614064020100107

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David Monsour

Keller Williams Keystone Realty - Gettysburg, PA

ABR - www.realty-insights.com

I know of a few areas locally where there is a ton of rental inventory. I'm happy to have all of my rentals full. I'm collecting some late rents, but nobody is actually behind. Given the current economic situation I've slacked back on some of my late penalties in order to keep full occupancy.

Jan 11, 2010 01:18 PM

Wallace S. Gibson, CPM

Gibson Management Group, Ltd. - Charlottesville, VA

LandlordWhisperer

Many area apartment residents have left and are renting larger homes with more $$$ to cover the costs...paying $500 per month for a bedroom in a house is cheaper than $750 for one bedroom in a 2 bedroom apt...many multi-unit residents have returned home to parents or relatives and some areas are totally overbuilt or have unsold apt-condo conversions that are being rented.

The Central VA HOME rental market is very strong and there will be a LACK of supply this summer as 500+ new military and security families move into the area

Jan 11, 2010 08:53 PM

Mark L. Ostrovsky

Howard Hanna Real Estate Services - Beachwood, OH

Howard Hanna Real Estate Services

For what it's worth I expect the apartment vacancy rate to decrease, though I imagine tenant screening criteria, i.e., credit scores, will decrease as well given how many future renters are under water now as homeowners.

Jan 12, 2010 11:35 AM

APARTMENT VACANCY RATE HITS 30-YEAR HIGH!

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Mark L. Ostrovsky

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