According to RealtyTrac, “1 in every 605 housing units received a foreclosure filing in September 2011.” In the hardest hit states, which include California, Nevada, Arizona, Florida, Michigan, and several others, the rate was closer to 1 in every 118 households.
Meanwhile, Multifamily Executive reports rapidly dropping vacancy rates and increasing rent prices for rental units in some of the markets hardest hit by foreclosures. Rental occupancy rate has jumped by more than 275 basis points in Detroit, MI; 239 basis points in Cape Coral, FL; and 267 basis points in Reno, NV, just to name a few of the affected cities.
According to the report, “Overall rent growth, which began an unanticipated surge in 2010, despite a lack of job and corresponding household creation, looks to continue at a trajectory that could push national apartment rents to historic highs by the end of the year.” Cities with some of the highest rate increases include San Jose, California; Portland, Oregon; Savannah, Georgia; and Chattanooga, Tennessee. All of these cities have seen rate increases of right around 10% this year alone.
These numbers will only increase as waves of displaced former homeowners start looking for places to live.
Category: Rental Market News