Multifamily Vacancy Rates Expected to Remain Low in Near Future, NREI

New York, NY, October 7, 2015—Vacancy rates in the multifamily rental sector are expected to remain low in the short term, according to National Real Estate Investor.

The vacancy rate for apartment properties rose to 4.3% in the third quarter, up 10 basis points from the second quarter, according to research firm Reis, Inc.

The New York city-based firm adds that so far, developers have opened 127,000 new apartments in 2015, roughly the same as in 2014.

The firm also predicts that this year will end with the strongest average calendar-year rent growth since 2007.

“We still anticipate that over 200,000 new units will be delivered during 2015. That means tens of thousands more units should hit the market during the usually slow fourth quarter,” says Ryan Severino, senior economist and director of research with Reis. Those new apartments are likely to open faster than new renters will line up to move in, pushing the vacancy rate towards 5%.