Vacancy Rate
Vacancy rate measures the percentage of rental properties that are empty and not earning income in a given area.
Quick Reference:
Market Metric. Measures Rental Supply and Demand. 2-3% Target.
Expanded Explantion:
A low vacancy rate means rental demand is strong, and properties are being leased quickly. A high vacancy rate suggests an oversupply of rentals or weak tenant demand. Investors use vacancy rates to assess aan area’s rental potential. In Australia, tight markets like inner city Mebourne or Sydney can vacancy rates below 2%, while regional areas may fluctuate depending on local job and population trends.