Rents Down, Vacancies Up
It appears that no industry is safe from the economic downturn. According to Yahoo! Finance rents are down and vacancies are up across many metro areas. My question is, where are people living? Are lower end apartments seeing a decrease in vacancies? I’m willing to bet that apartment complexes are suffering more than smaller apartment buildings and multi-family houses. While apartment complexes offer more amenities, local landlord have lower overhead and often have cheaper rents. In tough economic times do people really need pools, fitness centers, game rooms and club houses? The current trend of cutting back on every day luxuries is sure to carry over to the apartment rental market. It will be interesting to see how the economic downturn effects apartment rental sites like MyApartmentMap. I would suspect that with vacancies down, landlord and apartment complexes will be competing over a smaller share of tenants. Does that mean that owners will have to increase their marketing budgets to fill their vacancies? I imagine sites that allow users to post for free will see an increase in the amount of new listings.