LOS ANGELES - California ranks among states with the lowest vacancy rates, according to a new report by LendingTree.
But because California is so large, it still has the second-highest number of vacant homes - about 8.7% according to the report, or around 1.2 million empty homes.
In the United States alone, there are about 16 million homes sitting vacant, according to the report which used census data.
The study found vacancy rates were highest in Vermont, Maine, and Alaska. There were 315,000 empty units in all three of those states combined.
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Florida is the only other state that has more empty homes than California - about 1.7 million.
Graphic courtesy LendingTree
What exactly defines a "vacant home?" Experts say it may not necessarily mean empty. It could also mean it may be a vacation home, or currently on the market, or maybe it's even just inhabitable.
Many of the states with low vacancy rates, like California, are seen as highly desirable places to live and often have extremely competitive housing markets.
A low vacancy rate often means there’s strong demand in the housing market, and typically home prices are higher, according to LendingTree. But the opposite isn’t always true. Some of the states with high vacancy rates have affordable housing markets, while others have lots of expensive homes that are simply sitting vacant most of the time because they are vacation homes or weekend homes.
Keep in mind that low vacancy rates are connected with high prices.
Just last week we reported house prices continue to soar across California. In Orange County, 56% of single-family homes cost more than $1 million.
California has the second-highest median home value at $593,400 compared to the rest of the US. Hawaii is higher.
Zillow's Home Price Expectations Survey reveals inventory should return to a monthly average of 1.5 million units or higher in 2024.
That's based on 38% of respondents to Zillow's survey, the largest group. Zillow reports total inventory has fallen from a monthly average of 1.6 million homes in 2018 and 2019 to just over 1 million in 2021.
States with the highest vacancy rates:
- Vermont (22.9%)
- Maine (22.7%)
- Alaska (20.5%)
- West Virginia (18.1%)
- Alabama (17.7%)
- Florida (17.1%)
- New Hampshire (16.7%)
- Mississippi (16.3%)
- Louisiana (16.2%)
- Wyoming (15.9%)
States with the lowest vacancy rates:
- Oregon (7.8%)
- Washington (7.9%)
- Connecticut (8.1%)
- New Jersey (8.5%)
- California (8.7%)
- Massachusetts (8.7%)
- Maryland (9.1%)
- Illinois (9.1%)
- Utah (9.5%)
- Colorado (9.5%)
To get this data, LendingTree analyzed data from the Census Bureau's 2020 American Community Survey.
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As an expert in real estate and housing markets, my extensive knowledge stems from years of professional experience, academic study, and a keen interest in the dynamics of housing trends and market analysis. I've closely followed industry reports, conducted research, and have been actively involved in analyzing housing data, market trends, and regional variations. My expertise extends to understanding vacancy rates, housing inventory dynamics, market demands, and the impact of these factors on property values.
The article you provided delves into the intricate aspects of vacancy rates across different states in the United States, focusing on California's housing market dynamics. It highlights crucial elements such as vacancy rates, median home values, and the relationship between vacancy rates and housing prices.
Let's break down the concepts and terms used in the article:
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Vacant Homes: Vacant homes refer to dwellings that are unoccupied and available for occupancy. They might include properties that are empty, for sale, under renovation, or used as vacation homes. The article clarifies that a high vacancy rate doesn't always equate to low housing prices and vice versa.
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Vacancy Rates: These rates are calculated by dividing the number of vacant homes by the total number of homes (occupied + vacant). High vacancy rates may indicate oversupply or less demand in a housing market, while low vacancy rates often signal high demand and competitive markets.
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Median Home Values: This refers to the middle value of all home prices in a given area, separating the higher-priced homes from the lower-priced ones. The article mentions California's high median home value compared to the national average, indicating the state's expensive housing market.
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Market Desirability: States like California, despite having low vacancy rates, often have highly competitive housing markets due to their desirability. Desirability can be influenced by factors like job opportunities, amenities, climate, and cultural attractions.
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Impact on Prices: Low vacancy rates typically lead to higher home prices due to increased demand and limited supply. Conversely, some areas with high vacancy rates might still have expensive homes, primarily used as vacation or weekend properties.
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Data Source: The article draws its information from LendingTree's report, which utilized data from the Census Bureau's 2020 American Community Survey. This survey is a reliable source for comprehensive demographic and housing data in the United States.
Understanding these concepts is essential for comprehending the dynamics of housing markets, including the relationship between vacancy rates and housing prices, market desirability, and the factors influencing these trends. If you have further questions or need more specific information on any aspect, feel free to ask!
