Multihousing vacancy rate may rise, but will remain low

A recent report from CBRE shows that the multifamily housing vacancy rate is expected to rise slightly in 2013, but will remain near record lows.

CBRE analysts predict that the vacancy rate in 2013 will jump up to 5.3 percent from the 4.5 percent recorded in the third quarter of 2012.

According to analysts, the slight increase will be due to a combination of new units coming online due to increased construction and diminished demand from the record levels seen in recent years.

The level is still expected to be lower than the 5.4 percent reported at the end of 2011, due to the continuation of fairly high demand. Although some rental property managers may see a slightly diminished volume of incoming rental applications, housing market analysts are not predicting the rental market to be immediately overthrown by the recovery of retail housing.