Vacancy Rate

Glossary

Vacancy rate is the share of apartment units that are unoccupied, calculated as vacant units divided by total units.

Definition

Vacancy rate is the percentage of rentable apartment units that are unoccupied during a specific point in time or period. It is commonly calculated as vacant units ÷ total units × 100. It is the inverse of occupancy rate, so vacancy plus occupancy should generally equal 100%.

Example

A 250-unit apartment community has 15 vacant apartments at month-end. Its vacancy rate is 15 ÷ 250 × 100 = 6%, meaning 6% of the property’s units are not occupied.

Why It Matters?

Vacancy rate helps operations leaders understand how much inventory is not producing rent and where leasing, pricing, renewals, or make-ready performance may need attention. Some vacancy is normal because units transition between residents, but sustained or rising vacancy can signal demand issues, slow turns, or revenue risk.

‹ Vacancy Loss

Value-Add ›