Vacancy

What is a vacancy?

In the context of real estate, a vacancy refers to an unoccupied space that is ready to be rented to tenants. This usually pertains to properties such as a unit in an apartment complex or a house. 

What does the vacancy rate mean? 

The vacancy rate tells you how many rental units or spaces are empty compared to the total available. It’s typically expressed as a percentage. 

Suppose there are 1,000 rental properties available in a city. At a certain time, 50 of these apartments are unoccupied and available for rent. Here the vacancy rate would be 0.05 or 5% (50 / 1000). 

What influences vacancy rates? 

Vacancy rates can be influenced by factors including: Population growth Housing market conditions Seasonal variations Rental policies and regulations