The national apartment vacancy rate rises to 8%
A industry report on apartment vacancies and prices was released by Reis Inc., a commercial real estate information provider on Thursday. The report signaled that the national apartment vacancy rate rose to 8% in the last three months of 2009 and the pricing for these apartments dropped 3%. When compared to a year ago it rose from 6.9%. Whats the cause of all this? The obvious answer is the current state of the economy.
An obvious aftereffect is the inclination of letting go of unnecessary overhead costs and in most cases this means moving out of that nice upscale loft or over priced apartment. For many, especially young working professionals it has meant moving back home as a safe haven to reduce the hit in the potential circumstance of a layoff. An upside to this is with all the vacancies being reported it gives you, the potential customer a lot more leeway in negotiating a favorable price for your potential new place. The national average effective rent — what landlords actually charge, not what they ask for — fell 3% from the end of 2008 and 0.7% from the previous quarter.
There are reports from New York. Manhattan in particular that landlords are offering perks for renting at their apartment. Things ranging from free Starbucks to comped gym membership have all been reported. With no clear end to our economic downturn in site, this is a renters market that is extremely favorable to those looking for deals.