The homeowner-vacancy rate rose to a record 2.9% in the first quarter from 2.8% in the fourth quarter, about 1 percentage point higher than normal. The vacancy rate has jumped in all four regions of the country, as well as in cities, suburbs and rural areas since the housing bubble exploded. While the vacancy rate for single-family homes has risen to 2.5%, the most dramatic increases in vacancies has been in smaller condominium projects. The overall homeownership rate remained steady at 67.8%, matching six-year low. If this is true, then where the hell are all of these people sleeping at night? Has the homeless rate shot up by 2.5% as well? No –
About a fourth of the 18.6 million vacant homes are seasonal homes. Of the 13.9 million vacant homes suitable for year-round occupancy, more than half (7.5 million) are neither for sale nor for rent. Some may be second homes; others may be uninhabitable or in undesirable locations.
This is proof positive that reality and what you hear in the media rarely match completely. The housing markets work just fine if you leave them alone and let corrections happen naturally.
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