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Apartment Vacancies At Record High

From a hand-wringing Reuters:

U.S. apartment vacancies near historic high: report

By Ilaina Jonas Wed Jul 8

NEW YORK (Reuters) – The vacancy rate for U.S. apartments reached its highest level in more than 20 years in the second quarter and could soon exceed record highs if the recession persists, real estate research firm Reis Inc said.

The national vacancy rate rose to 7.5 percent, the highest since 1987 and an increase of 1.4 percentage points from last year, according to a report Reis released on Wednesday. The record high was 7.8 percent in 1986…

The second-quarter vacancy rate was 0.20 percentage point higher than the prior quarter and up from the cyclical low 5.5 percent reached in 2006, Reis said.

The U.S. recession has taken a toll on the U.S. apartment market, which largely relies on employment growth to fuel demand. Its largest tenant group, 18- to 24-year-olds, has been hardest hit by rising unemployment. Meanwhile, the apartment buildings sector has led all commercial real estate categories on loan defaults.

Second-quarter asking rent fell 0.7 percent from a year earlier to $1,040 a month, and 0.6 percent from the prior quarter, the largest single quarterly decline since Reis began tracking quarterly data in 1999

[I]n New York, the largest U.S. apartment market, vacancies fell 0.5 percentage points to 2.9 percent, despite a 1.7 percent decrease in rent to $2,679 compared with just the prior quarter and a 4 percent fall compared with last year

Does this make any sense?

If people can’t afford to get mortgages, and are being foreclosed upon at record rates, how is it possible that apartment rentals should be suffering?

Is everyone living with their parents or squatting with the ACORN folks?

This article was posted by Steve on Wednesday, July 8th, 2009. Comments are currently closed.

17 Responses to “Apartment Vacancies At Record High”

  1. U NO HOO says:

    “[I]n New York, the largest U.S. apartment market, vacancies fell 0.5 percentage points to 2.9 percent, despite a 1.7 percent decrease in rent to $2,679 compared with just the prior quarter and a 4 percent fall compared with last year…

    Does this make any sense?”

    No. it does not make sense, but then rent control doesn’t make sense either.

    Although, until AIG, or whoever, gets their obscene bonus maybe they can’t afford $2,679 per month for rent. $16 per hour for rent?


  2. Rusty Shackleford says:

    Rush pointed this out a few weeks ago. Due to the ridiculous taxes in that area, people are moving out in record numbers. It’s simple, basic, straight math. “You charge too much, thus I am going someplace that is affordable”.

    And so it is in the small case, thus it shall be in the large case.

    • jobeth says:


      Many, like Rush, ARE coming to Florida or elsewhere in the sun belt. Florida has no income tax. Compare that with NY.

      Property taxes here are all over the place. We live in a rural/semi-rural area where taxes are low…but Miami and other metro areas have high property taxes…but NOTHING compared to the North East.

      Also doesn’t hurt you can protect your home from lawsuits etc here. (O.J., point of ref)

      I’m hoping we don’t get a huge influx of people from up north. Seems when we get some of these people and their mindsets involved in our local governments, the first thing you get is higher taxes! Go figure! We have so many transplants in our governments. They bring their old way of looking at things with them. THEY want relief, but see nothing wrong in going after others. More change we can believe in I guess.

      My own petty pet peeve in our area is that we are already dealing with them removing street names and replacing them with numbered streets.

      Wouldn’t you rather live on “Virginia Lake Dr” instead of “SE 177th Ave”? In old Florida you just didn’t see that many numbered streets. Only where you get a lot of transplants.

    • Rusty Shackleford says:

      I’ve noticed that Jobeth.

      I’ve lived in many places, due in part to the military and due, in other part to the airline industry. I’ve noticed that, exactly as you said, the slickers move in, then try to take over, whining that they have to take their trash to the dump. Well, that’s the way it’s been for a long time but they see it as a hindrance. So….out come the trash trucks and the inevitable rules, regulations, and labor strikes and what-not. Such an improvement. Add to that that now you CAN’T go to the dump without some sort of prior approval, etc.

      So they get you coming and going and they are proud of the “progress” that they made us poor pedestrians come to.

      I remember telling one dork in Tucson…..who was from Chicago…to go back there and STAY BOY! STAY!

      I’ve had numerous uh….”conversations” with the transplanted city-slickers who are VERY liberal…and coming to THE SOUTH….and we have posters in our cubicles at work that say, “I don’t give a damn HOW you did it up north”. And also…”We have two highways that come through here: One goes east-west, the other, north-south. Pick one” And finally, “YOU’RE the one with the stupid accent” (my favorite)

      I feel no particular obligation to adopt any ways other than the established norm that is the place in which I live. In other words, I’m not interested in trying to make the natives see my point of view….mostly…I am interested in seeing theirs.

    • jobeth says:

      Rusty, You made me smile, “I don’t give a damn HOW you did it up north. My son married a gal from Mass. (divorced now) and when she came to Fl, every other word out of her mouth was, “That’s not how we do it up north” in a rather condescending way. I got so fed up with it that I actually went out and bought the bumper sticker for my car…and expressly showed it to her! With a smile on my face of course. She didn’t get it. LOL.

      Speaking about taking your trash to the dump…We don’t have trash pick-up either. We have a really clean, neat well run recycle system here with many sites located all around the county. They used to be open 7 days a week 7A-7P.

      Then came the vote on doubling our homestead exemption from $25,000 to $50,000. It was voted in and the first thing they did was close the recycle centers by half the days and shorten the hours open.

      Also…while the market value of our house dropped drastically due to the housing slump…they “assessed” our house higher for taxes…thus we pay just as much as before and get a lot less for it. That’ll teach us!

      And it isn’t only the northerners moving down south…When I lived in a rural county just to the east of Baltimore…we began having an influx of people from the city coming out to our area. Know the first things they wanted? Sidewalks, street lights, more trash pick-up etc etc. Like you called ’em…slickers. LOL

      I love the country!

    • pdsand says:

      I used to have one that said ‘welcome to dixie, don’t stay long’.
      The most annoying thing that yankees did; aside from not moving their jaws when they talked, talking, in fact yelling through their noses, and not speaking proper english (it’s us…come with US…) was that they didn’t pronounce place names correctly. And they had the nerve to say that the place names would be pronounced differently back up north, so they were in the right.

    • Right of the People says:

      I lived in NH about 20 years ago and we had the same thing happen to us. The yuppie scum from Bahston moved up to Concord because they couldn’t afford to buy a house there and wrecked our housing market. The house I had paid $29,900.00 for three years prior was now “valued” at $75,000.00! The prices in the stores went up dramatically and worst of all, the yuppies demanded a mall be built. They didn’t like shopping downtown, you had to pay to park plus walk outside from store to store, heaven forbid. Before the yuppie invasion we had both a Sears and a Penny’s downtown and they ended up moving to the mall as anchors. It killed downtown. After only one winter of commuting up to 4 hours one way (it is about 75 miles from Concord to Boston) nearly all of them tried to sell but the locals weren’t about to pay the prices they asked so a tom of the yuppies simply walked away from their places and their mortgages defaulted. On a Tuesday in early October 1988, forever known in Concord as Black Tuesday, thirteen banks were closed and their assets sold a rock bottom prices to banks that hadn’t been foolish enough to loan these idiots the money to buy their over-inflated palaces. It took years for Concord to recover. Plus the mall closed in the early 90’s then reopened downsized a few years later.

      The funniest thing that happened to me during this period was I was strolling downtown one Saturday morning when I was approached by tofu eater and asked to sign her petition for stricter gun control laws. At the time I was wearing my NRA Lifetime Member ball cap and a T-shirt that said “I’ll give up my gun when the pry my cold, dead fingers from it”. She asked me if I believed in gun control to which I replied, “Yes, you can’t hit what you aim at if you can’t control your gun.” It went right over her head.

    • jobeth says:

      Pdsand Yep… LIke the town of Kissimmee, Florida… KISS-a-mee vs Kiss-IM-mee. The latter being correct

      R Of the People…Stupid woman probably didn’t even know what NRA was! LOL

  3. U NO HOO says:

    “If people can’t afford to get mortgages, and are being foreclosed upon at record rates, how is it possible that apartment rentals should be suffering?”

    Maybe Barney and Chris have to pass a law creating affordable rental properties or Charley can give up some of his extra apartments.

    • jobeth says:

      Are you aware that ol’ Barney is already on record wanting to do something to make appartments more affordable? Hasn’t been that long ago…a few weeks. I wish I had read it more closely. If I had I would have more details to insert here. I’ll have to look it up and maybe add them here shortly.

      UPDATE: Here is the story


      “The powerful Massachusetts Democrat last week quietly introduced legislation that aims to use $1 billion in dividends paid by the recipients of government aid to provide rental housing opportunities for low-income and homeless families”

  4. proreason says:

    It makes sense to me.

    When times are hard, people share living spaces. Parents and children, young adults, elderly people, even families (mostly from foreign countries). It’s the only way illegal immigrants can afford to live as just one example. Even in middle class neighborhoods, many families that originated in India and China have multiple generations under one roof.

    Expect to see a lot more of this in the coming years, particularly among seniors on fixed incomes. For seniors, in addition to sharply reducing their expenses, sharing living spaces gives them some additional security.

    • Confucius says:

      Right on proreason.

      When I was in college, 4 of us occupied a two-bed/one-bath apartment.

      I’ve also seen newly-arrived Chinese live 6-8 per apartment and Mexicans 15-18 per house.

  5. BigOil says:

    “Is everyone living with their parents or squatting with the ACORN folks?”

    There is a third possibility – homelessness. Expect our crack media to be on this story immediately. They will be uncovering ‘Obamavilles’ all across the country.

    • jobeth says:

      Of course it won’t be his fault. It will be ours. So we should provide even more money so they can be kept in the fashion to which they have become accustomed. Out of work with full pay and “free” (to them) housing.

      It’s the only humane thing we can do. I mean they NEED their smokes and other “pleasures”. (sarc)

  6. Liberals Demise says:

    As the hippy generation comes of age, I foresee communes of ol’ geezers popping up and rampant sex in the parks with bouts of Geritol swigging.

    • jobeth says:

      Now THAT would be a sight to see! LOL.

      Can you see the sea of blackmarketed little blue pills?

      Forget the “weed”. They will have probably forgotten that by now…If age doesn’t do it, the weed itself will have made their memory a bit foggy.

      BTW…In case anyone wonders…this is MY generation! LOL! And no… I never did drugs…but the memory is still a bit foggy…so I know of what I speak! :-D

    • Liberals Demise says:

      Say what? I’m a bit foggy from the 60’s and 70’s. I just popped my last blue. Gotta troll the parks for some hippy chicks and see if they got a quart of Geritol they wanna share. Later chicky baby ….. Piece!!

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