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Just to put some context on this...there is a natural vacancy rate, which is defined as the vacancy rate at which owners and renters have roughly equal bargaini
by darksaints 4y ago
Just to put some context on this...there is a natural vacancy rate, which is defined as the vacancy rate at which owners and renters have roughly equal bargaining power, leading to roughly inflation-pegged rent growth. There are small variations from market to market, and different methodologies for measuring this rate, but economists have consistently estimated this natural vacancy rate to be around 8-10%.
The vacancy rate for the full US is about 6%. Things are going in the right direction at least. But for some US cities, like Seattle, Portland, and Minneapolis, we're still a long ways away from reasonable.
- eli_gottlieb 4y ago>there is a natural vacancy rate, which is defined as the vacancy rate at which owners and renters have roughly equal bargaining power, leading to roughly inflation-pegged rent growth. That's not natural. That's just holding landlord profits constant.
- darksaints 4y agoIt is natural, the profits being held are just an (eventual) consequence of it. It reflects a minimum of total rent (econ definition, not financial definition) for both parties, which is an ideal state that is sought for efficiency.