Vacant Homes on Market Hit New High
Diana Heeb Bivona
The Census Bureau reported this week that the number of vacant homes on the market rose 34% to 2.1 million at the end of 2006 versus the end of 2005. That represents the fastest increase ever. The report also found that vacancy rate for owned units made history as it increased 2.7%, up from 2.0% a year ago. That rate has not been above 2% for forty years. The homeownership rate remained flat at 68.9%.
Economist believe that an excess supply is likely to lead to an increase in homes available for rent, which should drive rental prices down and reduce core inflation.
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