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Vacancy rates indicate the availability of rental properties, houses for sale, and hotels. High rates suggest an economic depression, while low rates are desirable. Landlords and realtors keep track of these rates to determine rent prices and market trends. Commercial vacancy rates are also important, as high rates can deter consumers.
Vacancy rates are statistics kept about vacancies in rental properties, houses for sale and hotels. High vacancy rates are generally seen as a sign that the market is in trouble, while low rates are desirable because they indicate that property is a hot commodity and vacancies rarely remain unfilled for long. Vacancy rate statistics are kept by many government agencies and companies that specialize in economic analysis and can be useful to consider when people are moving into a community.
In the housing sense, a vacancy rate counts the total number of habitable but unoccupied units and determines what percentage of the total available homes are vacant. Vacancy rates include houses, apartments and other living conditions. The lower the vacancy rate, the more challenging it is for people to find housing, because the units they are interested in may not rent or sell very often.
High housing vacancy rates often suggest economic depression. They can occur when too many people move out of a community, leaving large numbers of empty homes, and when developers overestimate the housing market in a community. High rents can also increase the vacancy rate, as people may not be able to afford to rent instead of making other arrangements. Hotel vacancy rates can be an even stronger indicator, as high vacancies mean less money is flowing into the community.
Individual statistics are often kept for different types of housing, distinguishing between apartments, townhouses, single family homes and so on. Landlords often need to keep up with the latest information, as fluctuations can influence the amount of rent they can be charged. Landlords can also struggle with an unusually high vacancy rate for their own properties, often combined with high turnover where tenants are constantly coming and going.
Commercial vacancy rates are also an important economic indicator, and are usually calculated separately from residential rates. These rates can include empty retail businesses as well as other commercial buildings such as warehouses and factories. Low rates are desirable, especially since people are less likely to spend money in business districts with high vacancy rates. Psychologically, a row of empty storefronts can have a very frightening effect on consumers, even if the economy is really strong.
People interested in obtaining statistics on vacancy rates in a specific community can try looking at census data and local government offices. Realtors also like to keep statistics on vacancies, as well as websites that provide demographic data on various communities.
Asset Smart.
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