U.S. Apartment Vacancy Rate Hits 30-year High While Rents Dropped
Posted By thestatedtruth.com on January 9, 2010
U.S. apartment vacancy rate hits 30-year high
Thu Jan 7, 2010 1:01am EST
By Ilaina Jonas
NEW YORK, Jan 7 (Reuters) – The U.S. apartment vacancy rate rose to an almost 30-year high of 8 percent in the fourth quarter, and rents dropped in the biggest one-year slump, according to real estate research company Reis Inc.
The report reflects the job market, which so far has stubbornly refused to follow positive economic indicators such as the stock market rebound and improved manufacturing demand.
Even large apartment landlords such as Equity Residential (EQR.N), AvalonBay Communities Inc (AVB.N), Essex Property Trust Inc (ESS.N), UDR Inc (UDR.N) and Post Properties Inc (PPS.N) have reduced rents and offered perks to retain and attract tenants.
Yet, the apartment market may still turn around this year if those out of work become confident enough about a job market recovery to move into a rental, Victor Calanog, Reis’ director of research, said on Thursday.
In addition, the supply of newly built apartments is winding down as the last projects funded before credit dried up start to open for business.
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