The multifamily housing sector within the commercial real estate industry has received a confirmation of its growing influence, as new data released by Reis Inc. has determined U.S. apartment vacancies fell to a 10-year low during the fourth quarter of 2011.
The apartment vacancy rate fell to 5.2%, down from 5.6% in the third quarter of 2011 and 6.6% from the fourth quarter of 2010. During the fourth quarter, 8,865 new apartment units became available – the second-fewest for any quarterly period since Reis began compiling its apartment vacancy data in 1999.
New Haven, Conn., recorded the nation's lowest apartment vacancy rate, followed by New York City and Minneapolis. New York City had the nation's highest average effective rent – $2,876 – while San Francisco and San Jose, Calif., saw the highest effective rent increases during 2011.