The vacancy rate went up by 0.1 percent from the second quarter to 4.3 percent in the third quarter, Realtor.com.
Economists expect the vacancy rates will continue to climb as 200,000 additional rental units are expected to hit the market this year. “I don’t think this is the death knell for the apartment market, but it is going to be more challenging over the next four to five years than it was over the last four to five,” Ryan Severino, REIS senior economist, told Realtor.com.
In some markets, landlords are offering perks and dropping rents to be competitive. Rental real-estate brokerage firm Urban Igloo in Washington, D.C. reports that some landlords are offing a couple of months free of rent, free parking, and Uber gift certificates.
The vacancy rate in the nation's capital rose to 7 percent in the third quarter, up from 6.6 percent a year earlier in the same quarter.