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Apartment Vacancy Rate stays at Record Level, Rents increase Slightly

By Anonymous

From Nick Timiraos at the WSJ: Apartment Rents Rise as Sector Stabilizes

Nationally, the apartment vacancy rate stayed flat at 8%, the highest level since Reis Inc., a New York research firm, began its tally in 1980.... Nationally, effective rents, which include concessions such as one month of free rent, rose 0.3% during the quarter compared with a 0.7% decline in the fourth quarter of last year and a 1.1% drop in the first quarter of 2009. ...

"Rent reductions are not over yet," said Hessam Nadji, managing director at real-estate firm Marcus & Millichap.

Note: the Reis numbers are for cities. The overall vacancy rate from the Census Bureau was at a near record 10.7% in Q4 2009.

Rents plunged in 2009 by the most in the 30 years Reis has been tracking rents - and with vacancies at record levels, the slight increase in Q1 2010 rents doesn't mean the rent declines are over.

Full post as published by Calculated Risk on April 06, 2010 (boomark / email).