Apartment Vacancies Rise

When it comes to real estate, it’s definitely a buyer’s market. This means rental properties aren’t as attractive as they used to be. Vacancy rates have climbed to about eight percent.

It’s the highest rate in 23 years, according to real-estate research firm Reis Inc. Real-estate experts say the high unemployment rate is the driving force behind the increase in vacancies.

Twin Cities’ area apartment complexes are starting to see many renters make concessions because of the tough economic times. Brittany Hansen and Stefan Schroeder are just starting out. They decided to take in a roommate, to help with the rent at their two bedroom apartment in Shakopee.

Scroeder said, “It split the bills in half, everything was cut in half. We pay half. She pays half.”

The leasing manager at the Shenandoah Apartments, Mary Therring, said while some renters are “doubling” up, others are taking advantage of the weak housing market.

“I would say 90 percent of my people that vacate are moving to purchase houses,” said Therring.

The Shakopee apartment complex is offering coupons for reduced rent to help lure new renters.

Nationwide, rental prices have dropped about three percent. In the Twin Cities, some companies are offering free rent for up to two months to attract buyers.