US Housing

US Housing Market Update

6 July, 2018

Rise in natural vacancy rate may support rental growth

It is possible that the large number of new apartments entering the market over the past year has acted to increase the ‘natural’ vacancy rate. Uncertainty about achievable rents in new buildings means landlords have been willing to hold onto empty units for longer before adjusting rents. That provides one explanation for why rental growth has accelerated even as vacancy rates have risen to six-year highs.

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