How to determine an area's vacancy rate?

Question

Hell BP Nation!

I am trying to determine where to buy a single unit rental in my area (central New Jersey) and I am trying to figure out what is the best way to find the current vacancy rate for an area? Call local property managers and ask? I appreciate the help!

Thanks,

Rich

Krista Place · Answer

You can find vacancy data by MSA at https://www.census.gov/housing/hvs/data/rates.html and you can find it by geography at www.factfinder.census.gov.  Search for table B25004, then you can filter by state and geography.  Hope this helps.

Account Closed · Answer

I would get on Zillow and see what rentals are available in the area.

Matt Madalis · Answer

@Rich Harris another component you can look at if you are working with a Realtor:

Have them do a  comparative market analysis (CMA) this can show you how long properties on the MLS have been vacant on the market.  It will also show how long properties sat before being being rented, original listing prices vs rented prices, etc.

Rich Harris · Answer

Thank you for the response @Hasan Hamdan and @Krista Place

I appreciate it!

Hasan Hamdan · Answer

@Rich Harris I am from Central as well but I invest mainly in the North Jersey Area. Regardless, I do know people who are landlords in Central and am somewhat familiar. I think a better way to look at it is to see how desirable the area is (i.e, how long the commute will be to NY, school system, etc). The other question is how competitive your rent will be. If you have a good answer to both of those questions, I think you are in good shape.

Rich Harris · Answer

Thank you @Chheang Yang and @Kevin Hill for the response. I really appreciate it. Kevin, that memo, as helpful as it is, is from 2011. I will try to contact the NJAA and see if they have any updated info.

Thanks Again,

Rich

Chheang Yang · Answer

This is a sneaky way to do it, but it sort of works.  You should do a quick google search for property managers in the area and "interview" them.  Tell them you have a home you're considering to put out for rent (make sure you have an address ready).  Then ask them seriously about their services.  Inevitably, you will talk about vacancy.  At this point, talk seriously about what is a realistic expectation.

Interview 3 companies and you should get a good idea of vacancy.

Kevin Hill · Answer

I found vacancy rates by county in NJ, but not by town.

http://www.njaa.com/pdf-downloads/NJAA_MEMO_AHO_5_19_2011_Affordability_of_Rental_Housing.pdf

Rich Harris · Answer

Thanks for the response Michelle, but I don't understand your answer. In the few area's I looked, they all have multiple homes for rent, some more than others due to size/population of the area.

I am trying to determine the vacancy rate of certain/any area's to see the demand. Does that make sense?

How to determine an area's vacancy rate?

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