Reis reported Friday that the US apartment vacancy rate was at 4.3 per cent in Q1 2017, up from 4.2 per cent in 4Q 2016, and unchanged from 4.3 per cent in 1Q 2016. The vacancy rate peaked at 8 per cent at the end of 2009.
From Reis: Effective Apartment Rents Decline in 23 of 79 Metros Across the US. The National Effective Rent Grew 0.3 per cent in the Quarter, 3.1 per cent over the Year
Apartment markets are slowing in 23 metros across the US as indicated by a decline in effective rents in these metros. Effective rents net out landlord concessions which suggests that rents are flat in most of these markets but landlords have boosted free rent and other concessions to maintain occupancy.
At 4.3 per cent, the national vacancy rate increased 10 basis points in the first quarter of 2017 from 4.2 per cent in the previous quarter. One year ago, the vacancy rate was also 4.3 per cent. New apartment construction has been robust across the US, yet occupancy growth has moved in step with supply growth for most metros.