Rental Housing Vacancies Down at Close of First Quarter

As stated in a recent market report by Bob Bach, national director, market analysis at Northbrook, IL-based Grubb & Ellis Co., the average U.S. rental housing vacancy rate for both multi- and single-family units ended the first quarter at 10.1 percent. This is down from the peak of 10.4 percent four quarters ago, reports the Census Bureau. According to Bach, “Job and wage growth is providing young adults with the income to rent apartments. But red-hot home sales are restraining the rental market recovery as renters take advantage of low mortgage rates and mortgages that minimize monthly payments such as adjustable-rate and interest-only loans.” Until interest rates rise, Bach warns that the rental market will experience only modest improvement.