Like labor markets that include employed and unemployed persons, real estate markets include rented and vacant properties available for rent. Owners and managers of rental properties generally keep an inventory of vacant properties that can be rented on short notice. Because this practice is costly, finding optimal levels of vacant inventories is essential.
An ongoing research project at the Real Estate Center at Texas A&M University has developed a number of economic models of the relationships between supply and demand for rental properties and their rents in Texas real estate markets. The concept of natural vacancy rate is a useful framework for estimating the relationships between changes in vacancy rates and rents.
Read more...Rent: Natural Vacancy Rates in Major Texas Markets
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.