Natural Vacancy Rate
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Natural Vacancy Rate
The average vacancy rate for a rental property market that would result if supply and demand were in balance.
The level to which vacancy rates adjust over the long term. A benchmark by which current vacancy rates in the market are considered high or low.
Example: During a period of rapid population growth, apartment vacancy rates fell to less than 1%. The natural vacancy rate for the local market was 5%. Because of the unusually low vacancy rate, rents soared and plans were started on new apartment developments in the area.
The level to which vacancy rates adjust over the long term. A benchmark by which current vacancy rates in the market are considered high or low.
Example: During a period of rapid population growth, apartment vacancy rates fell to less than 1%. The natural vacancy rate for the local market was 5%. Because of the unusually low vacancy rate, rents soared and plans were started on new apartment developments in the area.
| Natural Attenuation, Nationalrealestate Investors Association (NAREIA) | |
| Negative Amortization, Negative Cash Flow |
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Barron's Real Estate Dictionary
Dictionary of Real Estate Terms. Copyright © 2008 by Barron's Educational Series, Inc. All rights reserved.
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