U.S. APARTMENT VACANCY RATE ABOUT TO HIT AN ALL-TIME RECORD: IMPACT
The national apartment vacancy rate is nearing the 1986 record of 7.8%. With all the home foreclosures, many more people are forced to rent. Rents are paid by jobs though, and unemployment is way, way up. What's going on? Are that many people living in their cars or in tents or on the streets? Well, more people have been reduced to those circumstances, but a huge group of otherwise apartment renters are 18- to 24-year-olds. These are people just out of high school or college. They happen to also make up the group hit hardest by the unemployment figures. They are sought after during boom times and even used to replace more expensive older workers, but when times get really tough, they aren't absorbed when they enter the job market and also, many of those older workers are willing to sacrifice salaries, wages, and other benefits to compete. With their seasoned experience, they can be more a benefit than a cost. Were are those 18- to 24-year-olds living? They're staying in school longer, if they can afford it; or they're staying with their parents longer or both.
This will slow the birth rate. Young people will forego marriages and having children right out of the wedding box.