Hmmm, I would have thought with the housing situation that apartments would have less vacancies. Then again, how has the housing situation affected rental prices of homes I wonder? Are they competitive now with Apartments? How many second investment homes have been turned into rentals as owners cannot sell them with out incurring large losses.
I guess a lot of people are moving back in with mom and pop as well.
I am glad to see NRO overweighted in the Health Care Reit sector. Still, I have always thought this was a survival story, and with out some economic recovery on the horizon, I cannot see things improving for NRO. A divvy cut to a penny may be int he works. Sorry to be so bearish.
I think that one of the factors with apartment vacancies is that there are a lot of people walking away from their houses. Many of these people have missed some mortgage payments before walking out and this has affected their credit adversely. When these people try to rent an apartment, they get turned down because of bad credit and so, apartment vacancies are very high and continuing to increase.
Of course, except for the Great Depression, the unprecedented percentage of people out of work or only working part-time has something to do with this also.
Another factor is all the new apartments coming on line. I know that here in Nevada there has to be several thousand new units available since during the housing boom, not only new houses, but new apt complexes were going up everywhere. There are also a lot of unsold condo units being converted to apartments in Las Vegas.