Vacancy Rates On the Decline?

Vacancy Rates On the Decline?
By: Nicholas A. Dunlap, CPM

CB Richard Ellis reported today that multi-family vacancy rates in the United States will decline from their all-time high of 7.4% in 2009. While rents are down approximately 1% from the fourth quarter of 2009, job losses have slowed and thus, occupancy rates are increasing, pushing vacancy rates downward. At DPG, our activity has increased and as far as occupancy goes, we are in a much better position now than we were last year at this time. A snapshot comparison of April 2009 to March 2010 shows that our loss to vacancy is down 40%. This number reflects skillful guidance and responsiveness. In a market that is constantly changing, it is imperative to be able to adapt and pair your product with specials that will attract the market.

The stats published by CBRE cite that the 20 to 30 “Gen Y” age group will spark the increase in occupancy rates as they begin to find jobs and are able to again move out of parents’ houses and roommate situations. You might recall, this doubling up originally occurred when the economy soured and these new renters were forced to move-out. Realizing the return of these renters to the marketplace could result in a very full summertime through fall/winter season.

My fingers are crossed.