Cities/Villages/Towns issued the following announcement on Sept. 14
On a quarterly basis, the city monitors vacancy rates for apartment buildings with four or more units. Vacancy rates are one of the key statistics the National Association of Home Builders track to judge the health and direction of the housing market. For general comparison, the median rental vacancy rate in the United States has hovered around 6.5% in recent years and an average annual vacancy rate between 5 - 8 % is considered a healthy range.
Through August, 2021, Wauwatosa's vacancy rates are:
- 2.6% for apartments with 4-25 units
- 3.3% for apartments with 26+ units
Low vacancy rates are typically interpreted as a sign of tight housing markets, with lower vacancy rates signaling a greater housing shortage, and vice versa for high vacancy rates. While the general perception of property vacancies may be a negative one, vacancy on some level is necessary for a healthy market and economy. Healthy vacancy rates ensure rents remain relatively stable and assist employers in recruiting and retaining workers who can find and afford a place to live in the community.
How can the vacancy rate be low when I see “for rent” signs?
You might see a "for rent" sign at an apartment building even if there are no immediate vacancies. Leasing agencies advertise because they want potential tenants to inquire about their residential communities and availability and have a database of prospective clients to contact as units become available.
Original source can be found here.
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