Reis reported that the apartment vacancy rate was at 4.3% in Q1 2017, up from 4.2% in Q4, and unchanged from 4.3% in Q1 2016. The vacancy rate peaked at 8.0% at the end of 2009.
From Reis: Effective Apartment Rents Decline in 23 of 79 Metros Across the U.S. The National Effective Rent Grew 0.3% in the Quarter, 3.1% over the Year
Apartment markets are slowing in 23 metros across the U.S. as indicated by a decline in effective rents in these metros. Effective rents net out landlord concessions which suggests that rents are flat in most of these markets but landlords have boosted free rent and other concessions to maintain occupancy.
At 4.3%, the national vacancy rate increased 10 basis points in the first quarter of 2017 from 4.2% in the previous quarter. One year ago, the vacancy rate was also 4.3%. New apartment construction has been robust across the U.S., yet occupancy growth has moved in step with supply growth for most metros.
emphasis added
Click on graph for larger image.
This graph shows the apartment vacancy rate starting in 1980. (Annual rate before 1999, quarterly starting in 1999). Note: Reis is just for large cities.
The vacancy rate had been mostly moving sideways for the last few years. It is possible that the vacancy rate has bottomed.
Apartment vacancy data courtesy of Reis.