A recent analysis by Reis Inc. showed that the apartment vacancy rate fell to six percent, down from 6.2 percent in quarter one and 7.8 percent in quarter two of 2010, according to Calculated Risk.
Vacancies fell in 72 of the 82 markets that Reis tracks. Vacancy rates are expected to continue declining throughout the year.
The article adds that with vacancy rates down, competition may be even further heightened by the low numbers of new apartments on the market as well as rising rental prices.
Wall Street Journal added that the average rent, among the 82 markets, for quarter two was $997; a year ago the median rent was $974. The rent did not rise in two of these markets.
“Rising rents and falling vacancies are the perfect situation for landlords,” said Rich Anderson, an analyst for BMO Capital Markets, to the Wall Street Journal. “It’s like drinking without the hangover.”
Although vacancy rates are down, it is also noted that 33,000 units were filled in the second quarter compared to 45,000 in the first quarter. Typically, the peak apartment renting season occurs from May through September.
“Barring some unexpected shock from the global economy, we expect the recovery to continue through 2011,” Reis wrote in the report. “Vacancies should continue to decline while rents rise at an even faster pace than we observed in the first half of the year.”