Vacancy Rate

Definition of 'Vacancy Rate'


The vacancy rate is a numerical value calculated as the percentage of all available units in a rental property, such as a hotel or apartment complex, that are vacant or unoccupied at a particular time. It is the opposite of the occupancy rate, which is a calculation based on the percentage of units in a rental property that are occupied.

Investopedia explains 'Vacancy Rate'


The vacancy rate is a useful metric for evaluating a rental property. High vacancy rates indicate that the property is not renting well; low vacancy rates point to strong rental sales. The vacancy rate and occupancy rate should add up to 100%.

Vacancy rates most often represent units that are vacant and ready to be rented, units that have been turned off upon the exit of a tenant and units that are not currently rentable because they are in need of repairs or renovations.


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