As foreclosure condo auction and foreclosed houses increase in number in Las Vegas, Nevada, vacancy rates in apartments decline. More people are reportedly forced to rent, while others made a conscious decision to stay away from homeownership while the housing market is still on a decline.
While buyers at Las Vegas home auctions continue to decrease, apartments are benefiting as vacancy rates in various categories diminish. The vacancy rate in the city's apartment market has fallen to 9.91% last month compared with the 10.51% rate recorded in December 2010. All apartment class categories recorded a month-over-month vacancy decline in January 2011.
Despite the fact that low-priced homes are offered at Nevada foreclosure auctions in huge numbers, most residents reportedly opted to rent apartments last month. Vacancy rates among the highest class of apartment units, or the so-called Class A category, declined to 7.23% in January 2011, representing a little over 37,200 units that have remained vacant. In the Class B category, the rate of vacancy was at 9.65% in January 2011, representing a total of 46,188 empty units.
For Class C apartments, more than 29,500 units remained unoccupied, representing a 13.71% vacancy rate for the category. Although there are affordable foreclosure condo auction units available in the market, majority of residents seem to have forsaken property buying for now, according to realtors. Market analysts stated that it is likely that apartments will remain a hot commodity for the rest of 2011.
Apartment developers and owners are hoping that despite the presence of thousands of cheap auctions homes for sale, city dwellers will continue to fill apartment units for the rest of the year. They stated that the monthly decline in vacancy rates is a significant development for the apartment property market and they are hoping that the segment will strengthen further in the coming few months.
Housing market analysts explain that the decline in apartment vacancy rates in the metro area is largely due to the rise in the number of single family foreclosed homes and foreclosure condo auction properties. They stated that homeowners who have lost their properties to foreclosures were forced to move to apartments, thereby lowering vacancy rates.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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