Apartment Vacancies Grow

US apartment vacancies hit their highest point since 1986, with the vacancy rate hitting 7.8%, according to Reis Inc. The rate is expected to climb further in the fall and winter when rental demand is typically weaker. Consequently, rents are down across the board, with the biggest declines in San Jose, New York and Orange County. The slump in rent and increase in vacancies is tied to rising unemployment, particularly in the under-35 age group. Reis anticipates that the vacancy rate will peak at well above 8% in mid-2010. Some charts below from the WSJ: