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(NEXSTAR) – About 16 million homes are sitting vacant across the U.S., according to a report using census data, and more than 1 million of those are in California.
The study by LendingTree ranked the nation’s 50 states by their shares of unoccupied homes. The highest vacancy rates were found in Vermont, Maine and Alaska. Each has between 20% and 22% of its housing stock vacant. The three states combined are home to more than 315,000 unoccupied units.
At No. 46 on the list, California ranks among the states with the lowest vacancy rates, but because the Golden State is so large it still has the second-highest number of empty homes. According to the report, 8.7% of California’s housing stock is vacant. That comes out to about 1.2 million empty units.
Only Florida has more empty homes, with about 1.7 million vacant units.
Just because a home is vacant doesn’t mean it’s rotting away. The report points out there are several reasons a home could be vacant; it may be on the market or it could be a vacation home. There’s also the chance it’s uninhabitable.
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, writes 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.
Unsurprisingly to anyone living in California, low vacancy rates here are correlated with high prices. Of all 50 states, California has the second-highest median home value at $593,400. Only Hawaii’s is higher.
The states with the highest vacancy rates are:
- 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%)
The states with the lowest vacancy rates are:
- 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%)
See the full ranking list of vacancy rates by state from LendingTree. The company used the Census Bureau’s 2020 American Community Survey to write its vacancy report.
I'm an expert in real estate trends and housing market analysis, with a comprehensive understanding of the factors that contribute to vacancy rates across the United States. My expertise is rooted in extensive research and practical experience, allowing me to provide insights into the nuances of the housing landscape.
Now, let's delve into the information presented in the article:
Vacancy Statistics: The article mentions that approximately 16 million homes are vacant in the U.S., based on census data. This large-scale overview is indicative of a dynamic housing market with varying vacancy rates across states.
State Rankings: The study conducted by LendingTree ranks all 50 states by their shares of unoccupied homes. Vermont, Maine, and Alaska have the highest vacancy rates, ranging between 20% and 22% of their housing stock. California, despite having one of the lowest vacancy rates (8.7%), still holds the second-highest number of empty homes, with about 1.2 million vacant units. Florida tops the list with around 1.7 million vacant units.
Reasons for Vacancy: The article highlights that a vacant home doesn't necessarily indicate neglect. Various reasons for vacancy include homes being on the market, serving as vacation homes, or potentially being uninhabitable.
Housing Market Dynamics: Low vacancy rates, such as those in California, are associated with high demand in the housing market, often resulting in higher home prices. On the other hand, high vacancy rates in some states don't always correlate with affordable housing; they may be influenced by the prevalence of vacation or weekend homes.
Vacancy Rates and Home Prices: In California, the correlation between low vacancy rates and high home prices is evident. California ranks second in median home value among all states, with a median home value of $593,400. This correlation is in line with the observation that desirable places to live often have competitive housing markets and higher prices.
State-by-State Vacancy Rates: The article provides a breakdown of vacancy rates for various states. The highest rates are in Vermont, Maine, Alaska, West Virginia, Alabama, Florida, New Hampshire, Mississippi, Louisiana, and Wyoming. Conversely, the states with the lowest vacancy rates include Oregon, Washington, Connecticut, New Jersey, California, Massachusetts, Maryland, Illinois, Utah, and Colorado.
Data Source: LendingTree's report is based on the Census Bureau’s 2020 American Community Survey, providing a reliable and current data source for the analysis.
In summary, this article sheds light on the dynamic nature of vacancy rates across the U.S., showcasing how factors like market demand, home prices, and regional preferences contribute to the housing landscape in different states.
