There are a lot of different factors that come into play when vacancy rates increase. In our current economy we have a few factors contributing to the increase in vacancy rates in most areas nation wide.
What's driving the vacancy rates? Several things:
Long-term unemployment continues, people are moving in with families and friends;
Younger workers are living with their parents while they look for jobs;
Older buildings face heavy competition from new construction, which includes both new rental apartments and condo units that did not sell and were converted to rentals.
People who cannot afford their home any longer or needed to move to find employment are renting their homes instead of selling or retning them while they are trying to sell them, thus there are more properties on the market for rent.
Also, the factors of supply and demand come into play too. When there is a great supply, current renters can shop around for the best deal and best price. This presents another problem that we are seeing occuring in a lot of markets, which is a decrease and rental rates, incentives and concessions being offered to attract renters to rent and or try to keep tenants that are currently renting.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125