LendingTree analysis shows Florida has 3 of the highest vacancy rates
An analysis of the 50 largest US metros has ranked them by vacancy rate, the share of housing stock that is vacant for sale.
LendingTree’s report reveals that three Florida metros – Miami (17.09%), Orlando (15.93%), and Tampa (15.25%) have the highest vacancy rates in the nation, all well above the overall metropolitan average of 9.44%.
But a high vacancy rate does not necessarily mean a more affordable market than those metros with a low rate. Florida for example is a popular destination for homeowners to buy secondary residences which often remain unused throughout most of the year, with their owners only living in them during select times, like winter.
Other markets with high vacancy rates – such as Birmingham, Ala., Memphis, Tenn. and New Orleans – may be affected by factors like sudden influxes of newly available homes and apartments, to sluggish economic growth.
“Knowing the number of vacant homes in an area is an important part of understanding the overall health of the local housing market," said Tendayi Kapfidze, Chief Economist at LendingTree. "For example, if both vacancy rates and home prices are relatively low, it could mean that sellers are parting with their homes for less money than they could have potentially received. If vacancy rates are low and housing prices are high, it could signify that the market is overly competitive, and that lower-income people might have a problem finding a house."
Lowest vacancy rates
San Jose, Calif. (4.26%), Minneapolis (4.96%), and Denver (5.35%) are the metros with the lowest vacancy rates.
The reasons for this ranges from strong job opportunities to a growing influx of millennial homebuyers.
Again, high vacancy rates may not mean high prices.
“High vacancy rates and high homes prices often suggest that an area has some unique characteristics, such as being a vacation hot spot or targeted by investors, which could mean the real estate is overpriced,” added Kapfidze. “High vacancy rates and low home prices might mean that an area is experiencing socioeconomic hardships, like high unemployment or crime rates."
Metros with the highest vacancy rates
Miami
Total households: 2,505,963
Total occupied households: 2,077,708
Total vacant households: 428,255
% of households that are vacant: 17.09%
Orlando, Fla.
Total households: 995,591
Total occupied households: 837,022
Total vacant households: 158,569
% of households that are vacant: 15.93%
Tampa, Fla.
Total households: 1,393,313
Total occupied households: 1,180,768
Total vacant households: 212,545
% of households that are vacant: 15.25%
Metros with the lowest vacancy rates
San Jose, Calif.
Total households: 676,737
Total occupied households: 647,891
Total vacant households: 28,846
% of households that are vacant: 4.26%
Minneapolis
Total households: 1,426,299
Total occupied households: 1,355,503
Total vacant households: 70,796
% of households that are vacant: 4.96%
Denver
Total households: 1,136,616
Total occupied households: 1,075,807
Total vacant households: 60,809
% of households that are vacant: 5.35%
