When searching for a new Apartment, you may find that some apartment buildings have a Vacancy or Vacancy Rate. Knowing what a vacancy is gives crucial information that is important during your search for your next apartment. The simple answer to, “What is a vacancy?" is that it refers to an apartment that is vacant, unoccupied or unavailable because it needs repairs or is currently undergoing repairs.

What is a vacancy rate?

The vacancy rate refers to the percentage of available apartments in a specific apartment building or complex. While the occupancy rate refers to how many units are currently rented out, the vacancy rate documents how many units are not occupied. Traditionally speaking, a building with a low vacancy rate means most of the apartments have tenants, which speaks to how desirable the building and/or location is. A high vacancy rate is a red flag indicating that the building and/or location are not in demand.

You can get residential vacancy data from the U.S. Census Bureau, which provides a quarterly report on the rental vacancy rate along with the homeowner vacancy rate and the homeownership rate. For instance, for the third quarter of 2022, the national rental vacancy rate was 6.0 percent, meaning rental units were in high demand.

To find out the rental vacancy rate for a local property, you can call the apartment complex, but the property manager may not share that information. You may need to check with the local housing authority.

How is a vacancy rate calculated?

To determine the vacancy rate for a building or complex, multiply the number of vacant apartments by 100 and then divide that sum by the total number of apartments. For example, if there are 200 units in the apartment building and 20 units of the building are not occupied, the vacancy rate is 10 percent.

When comparing vacancy rates among different apartment buildings or complexes, it's important to compare similar properties in similar locations. For instance, you should not compare a complex with 500 units to a building with just 150 units. Likewise, you should not compare a building in a popular metro city to a building in a small town.

What does a vacancy mean to me?

A vacancy rate is important when deciding if an apartment building is the right choice for a renter. Typically, if an apartment building or complex has a low vacancy rate, you may have a hard time finding an apartment to rent in that building or complex. If the building or complex has a high vacancy rate, it could mean one of two things. First, it could mean the building is new so several apartments remain available for rent. Similarly, it could mean there are several units undergoing repairs or renovations, so they are unavailable for rent at the current time.

Second, it could mean there is a problem with that particular apartment building or complex. Perhaps the property is not maintained as it should, or perhaps the rent is too high. Or, it could be that the building or complex is not located in a desirable area of town. It's important to talk not just with the property manager or landlord, but also with the other tenants to find out why the vacancy rate is high.

How can I use a vacancy rate in my favor?

If an apartment building or complex has a high vacancy rate and you still want to get an apartment, you could use that as a bargaining chip when negotiating items like rent, and specialty fees, such as pet fees, repairs, upgrades, and so on. Because property managers and landlords don't want apartments to sit empty, they could be more willing to give in a little before signing the rental agreement.

Don't be afraid to make a wish list of things you'd like to have in order to rent the apartment. Maybe you want a lower monthly rent or to have the pet fee waived. Or, maybe you want certain repairs or upgrades completed before you move in. Talk these requests through with the landlord or property manager, and don't be afraid to mention that renting the apartment to you would help improve the building's vacancy rate.

A vacancy could turn into your next apartment home

Always find out what the vacancy rate is for the apartment building or complex before talking about rental details with the landlord or property manager. Knowing what a vacancy is upfront could pay big dividends when negotiating a rental agreement on your next apartment.

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