Vacancy Rate

Real Estate

Vacancy rate is the percentage of rental units sitting empty in a property or market. National US rental vacancy averages 6-8%; healthy markets run 4-6%; oversupplied markets exceed 10%. For investors, vacancy directly reduces income — a property with 5% vacancy and $1,000 monthly rent generates $11,400 annual rent (not $12,000). Always underwrite at realistic vacancy rates, not zero. Causes of high vacancy: weak job market, overbuilding, rents above market, poor unit condition, problematic location. Manage vacancy through competitive pricing, professional marketing, fast turnover, good tenant relations to encourage renewals. Vacancy data published by Census Bureau and private firms (RealPage, CoStar).