U.S. Apartment Vacancies Rise on Concern Over Wages

We are continually fascinated with economic theory and discourse particularly as it pertains to the apartment industry. That's why when we were forwarded an article from Bloomberg News from our colleague Denise Hull, Publisher, West Palm Beach, we upon reading said article, sighed in the afterglow of economic bliss. That is not to say this article is full of good economic news. It is not. In fact, it points out a very real problem that will continue to plague the macro economy. Jobs, or lack thereof. The key to the article that pretty much sums up the vacancy rise is below:

"Twenty- to 30-year-olds are about 70 percent renters; they are a key driver for demand,'' said Chandan. `When they are not finding jobs, they are not renting either. They are more likely to move home with their parents.''

In the old economy (read 2 years ago) the thought of a massive slowdown in purchasing homes and condos was welcome news to the apartment industry for obvious reasons. Not so today as the promise of improved occupancies has not come with the slowdown in housing. We are learning, painfully, that the past has not been able to forecast this period. In the future, better economic tools must be required and more collaboration will be needed to better predict these periods.

U.S. Apartment Vacancies Rise on Concern Over Wages (Bloomberg News)