Thursday, January 07, 2010

It Is A Renters Market

The vacancy rate of U.S. apartments reached 8 percent in the fourth quarter of 2009, a 30-year high, according to real estate research firm Reis Inc.

Vacancies increased in 52 of the 79 markets that Reis tracks, rising the most in Tucson, Ariz., where they jumped 3.1 percentage points in 2009 to 10.5 percent. Jacksonville, Fla., ended the year with the highest vacancy rate at 14.4 percent.

In a separate report, Marcus & Millichap real estate firm forecast a further 2 percent to 3 percent decline in apartment rents over the next six months.

"Never before have we observed rental properties in so much distress, both on the space and pricing side," said Victor Calanog, director of research for Reis.Source: Reuters News, Ilaina Jonas and The Wall Street Journal, Nick Timiraos (01/07/2010)