Vacancy and Absorption Rates
  Vacancy1 Absorption2
Year Rental Apartment Vacancy Rate (5+ Units) Rented within 3 Months of Completion Rented within 6 Months of Completion
1975 8.3% 70.0% 85.0%
1976 7.8% 80.0% 93.0%
1977 7.1% 80.0% 94.0%
1978 6.7% 82.0% 93.0%
1979 7.6% 82.0% 93.0%
1980 7.1% 75.0% 90.0%
1981 6.4% 80.0% 92.0%
1982 6.5% 72.0% 87.0%
1983 7.1% 69.0% 85.0%
1984 7.5% 67.0% 84.0%
1985 8.8% 65.0% 84.0%
1986 10.4% 66.0% 84.0%
1987 11.2% 63.0% 82.0%
1988 11.4% 66.0% 84.0%
1989 10.2% 70.0% 86.0%
1990 9.6% 67.0% 85.0%
1991 10.4% 70.0% 87.0%
1992 10.0% 74.0% 91.0%
1993 10.2% 75.0% 88.0%
1994 9.7% 80.0% 93.0%
1995 9.5% 80.0% 89.0%
1996 9.7% 73.0% 88.0%
1997 9.2% 72.0% 90.0%
1998 9.5% 73.0% 89.0%
1999 8.9% 72.0% 89.0%
2000 9.2% 72.0% 87.0%
2001 9.7% 72.0% 82.0%
2002 10.5% 64.0% 78.0%
2003 11.4% 59.0% 79.0%
2004 11.5% 61.0% 81.0%
2005 10.4% 62.0% 84.0%
2006 10.2% 64.0% 76.0%
2007 10.3% 58.0% 74.0%
2008 11.2% 55.0% 68.0%
2009 12.3% 51.0% 71.0%
2010 11.6% 61.0% 79.0%
2011 10.4% 59.0% 73.0%
2012 9.5% 63.0% 81.0%
2013 9.1% 63.0% 82.0%
2014 8.3% 61.0% 82.0%
2015 7.4% 60.0% 80.0%
2016 7.8% N/A N/A
2017 8.6%    
Source: 1Housing Vacancy Survey, US Census Bureau. 2Survey of Market Absorption, US Census Bureau. Updated March 2018.

Prices, Rents, and Capitalization Rates for Apartment Properties

Year

Price ($ per Square Foot)

Annual Rent ($ per Square Foot)

Cap Rate (%)

2002

$130

$1.02

8.15%

2003

$133

$1.02

7.55%

2004

$151

$1.03

6.96%

2005

$149

$1.06

6.34%

2006

$146

$1.10

6.25%

2007

$147

$1.15

6.30%

2008

$137

$1.16

6.41%

2009

$120

$1.12

6.77%

2010

$148

$1.13

6.69%

2011

$152

$1.17

6.41%

2012

$153

$1.21

6.26%

2013

$150

$1.25

6.26%

2014

$171

$1.30

6.07%

2015

$186

$1.37

5.91%

2016

N/A

$1.43

5.71%

Source: Real Capital Analytics; MPF Research. Updated August 2017.