I was fairly surprised by this figure, I would have expected the vacancy rate to be higher. For 2 reasons; First – the number of apartment buildings being built around the twin cities. Second – the fact the owner occupied housing market is picking up steam and should be taking people out of the rental market.
At least this has been a historical trend, but it leaves me with another question. Has the housing market taken on a new reality?
- Do people value ownership as much they have in the past?
- Did the housing market crash change people’s opinions of ownership?
- Has the new economy of dynamically changing jobs and more mobile employees changed the need or desire for ownership?
These are questions that I am not sure how anyone would ever be able to quantify until decades later, but it does seem plausible to me.
The Twin Cities posted a 5.6% Rental Vacancy Rate for January 2015. The average vacancy rate since 1986 has been 6.5%. Based on these figures, rents should be showing some upward pressure. Assuming the number of new units isn’t going to flood the market overnight.