Rental Vacancies at Lowest Level Since 2003
With fewer rentals available across the country but strong demand, rents are expected to rise rapidly, experts say. Rents are expected to rise faster than the 2 percent to 3 percent average annual increase that was predicted earlier this year, RISMedia reports.
Vacancies for rental housing was 9.2 percent for the second quarter — 1.4 percent lower than a year ago — and a level that hasn’t been reached since 2003, according to the Census Bureau.
The multifamily sector is poised for growth. The National Association of Home Builders recently reported its Multifamily Production Index rising to 41.7 in the first quarter — its highest level since 2006. The index serves as an indicator for whether more multifamily developers and property owners believe conditions are improving.
Source: “Rental Vacancy Rate at 6-Year Low,” RISMedia (Aug. 11, 2011)