It's a renter's market. Prices fall, vacancies rise

[Liberal_in_LA]

Renters' market: Prices fall 3%, vacancies up 8%
By Les Christie, staff writerJanuary 7, 2010: 12:28 PM ET


NEW YORK (CNNMoney.com) -- There haven't been this many vacant rental apartments for at least 30 years, according to a new industry report.

The national apartment vacancy rate rose to 8% in the last three months of 2009, according to Reis Inc., a commercial real estate information provider. That is the highest level Reis has ever reported.

The vacancy rate barely inched up from the third quarter -- just 7.9% to 8% -- but it rose significantly from a year ago, when it stood at 6.7%. Even more dramatic, vacancies spiked 45% from the third quarter of 2006, when they had bottomed out at 5.5%.

The main culprit is, of course, the recession, according to Reis economist Ryan Severino. Not only do people lose their jobs during downturns, many others are afraid of being laid off. And they all feel pressure to reduce their housing costs.

http://money.cnn.com/2010/01/07/real_estate/rental_vacancies_soaring/index.htm

[Cronus Protagonist]

1. FUCK the landlords

Thieving bastards.

[truebrit71]

2. That's weird...I would have thought with everybody in foreclosure that apartments...

...would be in great demand...

[grasswire]

3. I don't see that affecting rental prices in my area.

Just as bad as ever.

[TorchTheWitch]

6. same in my area

rents keep going up

[Ignis]

7. Ditto.

There are many vacancies that have been open for several months, but I haven't seen a big price drop on those vacant rentals' rents.

:shrug:

[JVS]

4. Where do the people go?

[toadzilla]

8. they get room mates, live with family

I currently live in a house with 5 adults and a child. 6 months ago I had an apartment with just my partner and I.

A lot of people I know have entered into similar living situations lately.

[Liberal_in_LA]

12. They are doubling and tripling up, moving back with parents.

[bullwinkle428]

5. Must be a regional thing...rents are still going up around where I live.

(Iowa City, IA)

[Webster Green]

9. I got my rent dropped by $200 per month, just by asking my landlord.

I have a very cool landlord. :smoke:

[comrade snarky]

10. Nice! Good landlords are rare

When you get one, treat them right.

I've got one now myself, he cares more about filling the building with decent people than he does about getting what the market will bear. Like finding a diamond in a cow pasture.

[uponit7771]

11. Folk must be living on the street or migrating out of country then, if foreclosures are up & apt...

...vacancies are up then we're really hurtin as a nation.