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Multifamily living has become increasingly more desirable in 2021, despite increasing rent growth and limited supply. Residents are willing to pay higher rents, as the national average rent price continues to increase month over month, setting new record highs. While some are concerned this will lead to a real estate bubble, this not likely.
One major factor contributing to the desire for a renter lifestyle is coming from both the older and younger generations placing less importance on home ownership, and instead opting to lease. As of September of 2021, the national average vacancy is down to 2.7%. Low vacancy rates indicate that a market is flourishing, and that residents are continuing to remain in the area. When evaluating the strength of a market, low vacancy is one indicator for demand and a market poised with stronger potential for success.
Here are the top 12 metros with the lowest vacancy rates as of September 2021:
12. West Palm Beach, Florida
Vacancy Rate: 2.16%
Percentage of Renters in the City: 46%
Average Rent: $1,862
11. Philadelphia, Pennsylvania
Vacancy Rate: 2.05%
Percentage of Renters in the City: 45%
Average Rent: $1,736
10. Detroit, Michigan
Vacancy Rate: 2.04%
Percentage of Renters in the City: 46%
Average Rent: $1,163
9. Tampa, Florida
Vacancy Rate: 1.98%
Percentage of Renters in the City: 44%
Average Rent: $1,647
8. Sacramento, California
Vacancy Rate: 1.96%
Percentage of Renters in the City: 40%
Average Rent: $1,709
7. Fort Lauderdale, Florida
Vacancy Rate: 1.94%
Percentage of Renters in the City: 51%
Average Rent: $2,301
6. Virginia Beach, Florida
Vacancy Rate: 1.76%
Percentage of Renters in the City: 31%
Average Rent: $1,455
5. Miami, Florida
Vacancy Rate: 1.75%
Percentage of Renters in the City: 45%
Average Rent: $1,915
4. San Diego, California
Vacancy Rate: 1.53%
Percentage of Renters in the City: 39%
Average Rent: $2,433
3. Riverside, California
Vacancy Rate: 1.37%
Percentage of Renters in the City: 27%
Average Rent: $1,905
2. Providence, Rhode Island
Vacancy Rate: 1.12%
Percentage of Renters in the City: 43%
Average Rent: $2,158
1. Orange County, California
Vacancy Rate: 1.12%
Percentage of Renters in the City: 26%
Average Rent: $2,322
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About the Author
Ellie is the founder of Blue Lake Capital, a commercial real estate investment firm specialized in multifamily investing throughout the United States. At Blue Lake Capital, Ellie partners with both institutional and individual investors to grow their wealth by achieving double-digit returns by investing alongside her in exclusive multifamily deals they usually don't have access to.
A defining factor of Blue Lake Capital’s strategy is founded in utilizing machine learning/artificialintelligence throughout the course of all acquisitions and asset management. This advanced technology enables the company to produce accurate and data-driven forecasting for all assets on a market, property, and even tenant basis. In doing so, Blue Lake is able to lead commercial investments with the full capabilities of today’s technology.
Ellie is the host of REady2Scale , a podcast that highlights honest, insightful, and thought-provoking discussions on the multiple approaches for successful real estate investing.
She started her career as a commercial real estate lawyer, leading real estate transactions for one of Israel’s leading development companies. Later, as a property manager for Israel’s largest energy company, she oversaw properties worth over $100MM. Additionally, Ellie is an experienced entrepreneur who helped build and scale companies by improving their business operations.
Ellie holds a Masters in Law from Bar-Ilan University in Israel and an MBA from MIT Sloan School of Management.
You can read more about Blue Lake Capital and Ellie Perlman at www.bluelake-capital.com.