I think vacancy rates in some metropolitan areas increased primarily due to rent control, rent stabilization, tenant rights or the risk of future legislation.

I think vacancy rates in some metropolitan areas increased primarily due to rent control, rent stabilization, tenant rights or the risk of future legislation. If you can't raise rents, you'd be less likely to react to lower market rents. So prices stay sticky on the way down. Even if the laws are not in place now, there is a risk of them being in place in the near future and you'll be stuck at below market rents. Also if you can't remove tenants then you'd be more selective and naturally that would increase vacancy rates. A high vacancy rate doesn't prove that its not expensive to fill a rental. In fact higher vacancy rates means losing a tenant is even greater than if there were low vacancy rates. That means that an empty apartment is going to stay on the market even longer. And most landlords have some debt arrangement, are paying interest, taxes and insurance in addition to forgoing rental income.