Posted on Wednesday, 10.07.09
Unemployment Dents Demand Vacancy Rate Rises to 7.8% as; Monthly Rents Decline
Miami apartment rentals hit their highest vacancy since 1986. Vacancies fell in cities from Raleigh, N.C., to Tacoma, Washington, as rising unemployment continued to chip away at demand during the traditionally strong summer rental months.
According a real-estate research firm that tracks vacancies and rents in the top 79 U.S.markets the vacancy rate reached 7.8%, a 23-year high. In the fall and winter, when rental demand is weaker in most states, rates are expected to get worse. Miami apartment rentals might see less of a decline in vacancies.
One tenant in New York rented a one-bedroom apartment in July at a rate of $1,950 which was down from $2,450 for the previous tenant. Her first month's rent was free and her landlord painted the apartment, scrubbed the floors and added window coverings.
"The experience was night-and-day different from before," said Ms. Hyman, who had rented other Manhattan apartments between 2002 and 2007, each time paying a brokers' fee and feeling pressured to sign a lease the minute she found an apartment. Now, she says, "Renters are the ones with the power."
We are seeing the same trend with Miami apartment rentals. People are finding that not only are they able to afford a rental now, they are getting a better and bigger apartment for their money.