Vacancy Rates in Akron

11 Replies | Cleveland, Ohio

Hello all,

I'm analyzing a 6-unit with two 1 BD / 1 BA units and four 2 BD / 1 BA units.  I'm using 10% for vacancy in my proforma analysis.  Is this a good number to use or is it to conservative?  Any help is appreciated.

Thanks,

Justin

Hi Justin, 

I have actually been recently looking in the Akron market too. I've been doing some work talking with local renters in the area and some property managers and what I have been told is that if it is within 1 mile of campus the vacancy rate is very low, outside that it can be much higher and the city average is 7.1% vacancy. Goodluck!

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I’m interested in the Highland Square area        - just started analyzing some multi family homes. It’s the vacancy rate that always concerns me, but it seems like Akron is close to the national average. I like the idea of college rentals. 

Originally posted by @Justin Wilson:

Hello all,

I'm analyzing a 6-unit with two 1 BD / 1 BA units and four 2 BD / 1 BA units.  I'm using 10% for vacancy in my proforma analysis.  Is this a good number to use or is it to conservative?  Any help is appreciated.

Thanks,

Justin

Yea that's fine. 5%-10% is a reasonable expectation of vacancy when running an apartment building in an area like this.

Originally posted by @Debra Lamm :

I’m interested in the Highland Square area        - just started analyzing some multi family homes. It’s the vacancy rate that always concerns me, but it seems like Akron is close to the national average. I like the idea of college rentals. 

 Be careful of Akron college rentals. The university has began building a lot of new campus housing (increasing the competition). Also, enrollment has been struggling.

@Clifton Young

Thank you. I am thinking of Highland Square.  The area just next to Highland Square, for example--Beck or Byers area. I agree that college rentals, particularly in Akron, are unpredictable with respect to vacancy rate and damages.  I don't think we will see any upticks in college enrollment for quite a few years, if that. 

@Justin Wilson In Akron I stick between 5-10 but I personally always go conservative on my numbers so I calculate using the higher end of the range. It also depends on the area, Akron is a large city with several different pockets.

Hey, new BP member here.

I am a former Akron U grad, looking to break into the market in the next year. I lived in the area for 10 years and am very familiar with the area and rent prices. I'm curious.... what is this 6 unit selling for? Rough range? I would like to semi-targeting a 4-6 unit as well.