According to a recent report released by industry, the apartment vacancy rate in US has dropped to a level considered to be lowest in a decade, while sluggish income growth has contributed in moderating the increase in rent.
The apartment vacancy rate on national level dropped to 4.1 % in fourth quarter, which is 0.1 % point lesser than third quarter. This vacancy rate marked the lowest level in rental market since the year 2001, when it reached 3.9 % in third quarter.
Primarily it is the negligible growth in wages and slow employment market which kept the rent growth from rising above 0.8 %. However this level is much lower than what is considered to mark such decrease in vacancy rates.
The report further mentions that, although, in relation to vacancy, the growth of rent nationally remains low, there are still many markets where the surge in rents continues. Seattle, San Jose, Oakland-East Bay and San Francisco are a few such markets where the rent rate scenario continues to boom.
In terms of the sternest vacancy rate, New Haven is ranked at the top with 2.2 % and San Diego is at number two. San Jose has been ranked third, while New York came at number four.
Considering the trend that the rent market is following, it is expected that the rate of vacancies will further increase in the year 2014 slightly, while the rent can rise by 3.3 % approximately.