There are 5.6 million homes in the 50 largest United States metropolitan areas currently sitting vacant, including 123,000 in the D.C. metropolitan area.
With a shortage of available homes one of the big reasons for a tight housing market, why aren’t those vacant homes among possible solutions?
“It’s not that there are tons of vacant houses in the United States, which means there is no housing supply shortage. If you really dig into the reasons why houses are vacant, you’ll see that, yes, there really is a housing availability shortage in the United States,” said Jacob Channel, chief economist at LendingTree.
Among the 4.85% of existing homes in the D.C. region that are vacant, 33% are empty because they are rentals between tenants — the number one reason.
It is the same nationwide, followed by homes that are seasonally occupied, most commonly as vacation or second homes.
Neither of those reasons will solve the shortage of available homes.
For buyers, extreme vacancy rates do serve as red flags. Extremely low rates indicate a very tight rental or buyer market. Extremely high vacancy rates may be areas to steer clear of.
“It might mean there are not a lot of people who are interested in living there, and if you’re thinking about buying a house, it could mean that the value of your home doesn’t really appreciate over time — and if you decide too sell, you could be waiting a long time before your home changes hands,” Channel said.
New Orleans has the highest housing vacancy rate, at 14.5%. The top reason is unoccupied rental homes. Miami and Tampa also have among the highest vacancy rates, at 12.9% and 11.8%, with the top reason being homes that are for seasonal, recreational or occasional use.
LendingTree’s report, based on Census data, strongly indicates vacancy rates in the current market are no reflection on demand from buyers or renters and have no significant impractical on supply or prices.
Its full report is online.
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