Vacancy Rates Lower Than Expected

According to a recent report the apartment vacancy rate has remained lower than was projected at the beginning of 2016:

Industry experts predicted that with apartment supply set to peak this year, the vacancy rates would experience a noticeable increase. But a mix of continued strong demand and construction delays has forestalled a spike in the vacancy rate, though it has been inching up this year.

In the third quarter of 2016, the vacancy rate was 4.4 percent, up from 4.2 percent in the second quarter of 2015, according to Reis data. Reis researchers expect the vacancy rate to hit 4.6 percent by the end of 2016. When broken down by building types, Class A units have a slightly higher vacancy rate than more affordable Class C units.

The report goes on to say that rates are expected to rise again in 2017. You can read the full report here.