The Nation Association of Residential Property Managers has released the latest vacancy reports from Q3 of 2022. The data indicates that vacancy rates in both Ada and Canyon County have increased from 2022 Q2 to Q3, as well as Q3 of 2021 to Q3 of 2022, for a an average of 3.48% for all units. For reference, the average vacancy rate in Q2 was 1.66%. In Ada County, the average vacancy rate for multifamily units was 2.58%, and for single family homes, vacancy was the highest at 5.13%. In Canyon County, multifamily units had a lightly lower vacancy rate that in Ada, sitting at 2.50%, and followed the same trend for single family, sitting high at 5.08%. The property management industry has seen a substantial jump in inventory for single family homes rentals because of the housing market shift. More and more homeowners are turning to renting, instead of holding out for a buyer, and this has directly effected vacancy rates across the valley.
First Rate Property Management averaged a slightly lower overall vacancy rate, averaging 2.07% in Q3. Demand for both single family and multifamily rentals typically declines in Q3 and Q4 of a year cycle, as most renters don't want to make a big move during the holidays, or during the colder months. With an elevated supply of rentals from personal residence, turned investment property, Q3 has resulted in the highest vacancy rates of the year for FRPM, and many other property managers alike.
The saturated supply of single family homes has caused a decrease in average rent rate in both counties. The overall average price in Ada County decreased by $42.00, and the average market rent was $1,962.00. In Canyon County, the overall average price decreased $97.00 and the average market rent was $1830.00. Historically, multifamily units have been sought out by renters as the cheaper option, but the push for new construction of multifamily units and high density living, especially in Canyon County, continues to reduce the price gap between the two types of dwellings. A plateau in vacancies is expected if the market follows its usual trend. However, contributing factors such as rising interest rates, rising inflation rates, and increased cost of living for all Idahoans makes the future rental market unpredictable.
Link to full report here! https://www.boiseproperty.management/documents/Q3-2022-Vacancy-Report.pdf.