National vacancy rates have dropped sharply and rent rates have increased. The national vacancy rate fell to
7.2% from 7.8%. Renters are still price sensitive and shunned higher rents, but were optimistic enough to sign one year leases.
San Fracisco vacancy rates coming in around 5%. However, even though rents are beginning to rise again, we are certainly not seeing the higher rates we were getting before the collapse. Personally, I think we can thank the reverse commuters working for Google, Apple, Ebay and Genentech.
Vacancy rates and rent rates for large apartment buildings and rents are turning up and many investors think we may have begun a bottoming process. The wild cards are jobs, rents are closely tied to peoples ability or willingness to pay. Uncertainty causes renters to lower expectations and this hutrts highr end units.
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