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Rental Housing and the Natural Vacancy Rate

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  • Daniel Hagen
  • Julia Hansen

Abstract

This study uses 1989–2005 data for the Seattle metropolitan area to test the natural vacancy rate hypothesis for rental housing markets using a new methodology. Findings support the existence of a natural vacancy rate for apartments that varies over time, and in some cases across apartment submarkets. Results show a decline in the natural vacancy rate in the time period following the introduction and growth of the Web. Results also show significant differences in natural vacancy rates for different geographic subareas. No significant differences in the natural vacancy rate are found for different apartment types.

Suggested Citation

  • Daniel Hagen & Julia Hansen, 2010. "Rental Housing and the Natural Vacancy Rate," Journal of Real Estate Research, Taylor & Francis Journals, vol. 32(4), pages 413-434, January.
    • Handle: RePEc:taf:rjerxx:v:32:y:2010:i:4:p:413-434
    DOI: 10.1080/10835547.2010.12091288
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