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Charlotte Pre Foreclosure Homes Contributed to Vacancy Surge

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By : John Cutts    99 or more times read
Charlotte pre foreclosure homes have contributed to the rise in apartment vacancy rate in the metro area, as more foreclosure properties mean lower home prices and more affordable homes for renters.

The housing crisis and current financial difficulties have also pushed young adults to move out of their rental apartments and move back in with their parents to cut costs.

According to Charlotte apartment market analyst Real Data, the apartment vacancy rate in Charlotte has soared to 13.6 percent, the highest level reached in the region. Two other major reasons for the vacancy increase are the surplus of rental apartments and the recession.

Real Data said that a total of 9,400 new apartment units were added to the Charlotte rental market over the two-year period from 2008 to 2009. Within the ten-year period from 2000, there was also a two-year span when almost 13,000 new apartment units entered the market.

Construction of new apartments has declined sharply as projects planned for this year have been stopped. Developers realized Charlotte pre foreclosure homes are still surging and the apartment vacancy rate is still rising.

The pace of foreclosures in Charlotte and in other areas of Mecklenburg County jumped up in February by a staggering 82 percent from the pace of February 2009 and surged by 17 percent from filings in January. People planning to find lists of foreclosures in Charlotte will not be frustrated as the local market is still full of distressed properties.

Nearby counties such as Gaston, Catawba, Cabarrus and Iredell and Rowan also posted increases in foreclosures. Even the economically stronger counties of Wake, Orange, Durham and Johnston because of their research facilities and high technology enterprises posted faster paces of foreclosure activities.

In the South End area, apartments are also suffering from low occupancy rates. The 360-unit apartment complex of Crescent Resources is only 66-percent occupied. The 269-unit owned by Dinerstein Co. is 44-percent occupied and only because the developer was able to forge a contract with corporate housing provider Oakwood.

The vacancy rate in South End has climbed up from 8.6 percent in February last year to 17.7 percent in February this year. The average rent fell slightly from $887 last year to $877 this year.

Despite the high vacancy rates, apartment owners are optimistic the market will recover faster than expected as rents have stopped falling and have started rising. They hope that the impact of Charlotte pre foreclosure homes on the apartment sector will not be as strong as before.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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