Natural Vacancy Rate | Propertylogy

Natural Vacancy Rate

By on August 28, 2018

The natural vacancy rate is the average percentage of rental properties that are not occupied with tenants when there is balance in demand and supply.

This figure is usually used as a benchmark to compare historical or current vacancy rates against so as to have a general idea of market sentiments.

By dividing the number of units vacant with the total units of rental units, one would be able to calculate vacancy rate.

However, the calculation have it’s limitations as a house can have 3 rooms for rent but only one is being leased.

The same can be said of multi-family property.

For such properties, the researcher has be clear on his objectives of running the calculation and adjust the equation or the data accordingly.

You May Also Like...

hair1 eye1 abs1
View the latest and lowest Singapore Home Loan rates
Why friends look forward to your FAILURE
Hiring a competent agent
Best EVER excuses for being late to work

Investors and homeowners receive our newsletters. Subscribe to our list.

Get More Real Estate Knowledge & Insights From Our Newsletters

Enter your email below

Send this to a friend