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March 03, 2015

Which Markets Will Have the Highest Apartment Vacancy Rates

Rental Housing

Markets with High Apartment Vacancy Rates

This year we will see of one of the largest increases in apartment building completions in recent history with Millenials helping to fill these new units in some markets, based on our Multifamily housing economic outlook for 2015.

Given the amount of new supply and the continued upward trend of construction starts, we expect vacancy rates to rise in most metros as new supply becomes available.

The top 10 areas with the most gross effective income growth along with the vacancy rates are:

 

City

Income Growth

Vacancy Rate Forecast

1 San Francisco, CA 4.9% 3.0%
2 Oakland, CA 4.2% 3.2%
3 Seattle, WA 4.0% 4.7%
4 San Jose, CA 3.9% 2.6%
5 New York, NY (5) 3.9% 2.6%
6 Sacramento, CA 3.9% 3.3%
7 San Diego, CA 3.8% 2.9%
8 Denver, CO 3.8% 5.6%
9 Portland, OR/WA 3.7% 3.3%
10 Boston, MA 3.7% 4.1%

A video preview along with the complete Outlook is available here.

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