RENTAL apartment occupancy dropped across the United States West and South in the third quarter as rising unemployment forced some renters to give up their apartments and move in with friends or family members.
The average occupancy rate in 22 US states tracked by RealFacts, mostly in the West and South, fell to 92.9 percent from 93.6 percent a year earlier, the California-based data company said yesterday.
The rate was little changed from the second quarter, when it was 92.7 percent, according to Bloomberg News.
Occupancies would likely drop further as the US economy slumped, said RealFacts owner Caroline Latham. "Apartment housing should be down in the gravel on its knees giving thanks," because occupancies have dropped by "the slightest fraction" so far, Latham said. "Unemployment usually means a drop in occupancy. That has historically been the case. It's possible that we're going to see a big drop in occupancy in the fourth quarter."
US employers cut the most jobs in five years in September in an effort to raise profits. The unemployment rate was 6.1 percent, a climb of 1.4 percentage points from a year before, the Labor Department said.
Apartment landlords were likely to suffer as laid-off workers combined their households, Latham said. "Some of those people who have been affected by the layoffs and the unemployment may have decided to go back home and live with mom and dad," she said.
Average rents rose slightly in the third quarter to US$1,002 a month.