The national apartment vacancy rate ticked up slightly in the fourth quarter as multifamily construction begins to outpace current demand. The vacancy rate increased to 4.5 percent compared to 4.4 percent in the third quarter, according to a report from real estate research firm Reis.
Vacancy rates posted increases in 50 of 79 metros in the fourth quarter. New York and Washington, D.C., reached record rates of 5.1 percent and 6.6 percent respectively, according to Reis. The firm predicts that vacancies will continue to rise in 2018 before starting to taper off in 2019.
Construction dropped to 43,769 units in the fourth quarter. In the third quarter, there were 60,890 units. Asking rents increased 0.4 percent, and effective rents rose 0.3 percent, according to Reis. Asking rents rose 3.9 percent year over year, and effective rents rose 3.3 percent.
Source: “U.S. Apartment Vacancy Rates Rise in Fourth Quarter,” Reuters (Dec. 28, 2017)
Source: St Louis REALTORS