Inquiring minds are looking at an article on First Tuesday Online Journal looking at the vacancy problem with regards to the bursting housing bubble:
Heavy residential vacancies are an indicator of an improperly functioning local economy — one in which real estate is held hostage by a lack of liquidity (read: cash) and a dearth of users. The length of time it will take for neighborhoods to re-populate properties left vacant as a result of the Millennium Boom depends on the extent of the vacancies both locally and within the state, and the rate at which ready, willing and able homebuyers or tenants become available.
As mentioned in the article, there are different kinds vacancies. Regarding :
California’s equilibrium vacancy rate for homeownership properties is roughly 1.2%, a keystone figure to remember. As the economy strengthens and then weakens, the actual vacancies will run below the equilibrium (as in 2005) and above it (as in 2010). Presently, homeownership vacancies are extremely high with no recent history of equal distortion.
The equilibrium vacancy rate for residential rental properties in California is roughly 5.5%, a pivotal figure for property managers and investors, and varies above and below that figure depending on conditions of a full recovery or a recession. Presently, the rental vacancy rate is rising and will not peak out for at least a couple of years, probably in 2013 and at just over 10%.
Please click on the link above to get a more complete vision of what is actually happening. Well worth the time.
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