Rental Vacancy Rates By State (2005-2026)

The U.S. rental market today looks near unrecognizable compared to where it stood in 2005. It’s seen years of post-recession tightening, a global pandemic, and a dramatic shift in where Americans choose to live. 

Rental vacancy rates across the United States tell the story of this changed market. As a landlord, developer, or investor, rental vacancy rates are one of the most powerful tools you have to assess equilibrium or disruption. The numbers reveal how supply measures against demand, how renters feel about affordability, and what a particular type of unit is worth in the current climate. 

When reading the numbers, a 5–8% vacancy rate indicates a healthy range with normal tenant turnover, a stable market, and balanced supply and demand. A rate above 8% hints at potential oversupply or economic weakness, which can put pressure on rents, while a rate below 5% communicates a tight market with few available units, often a precursor to rapid rent growth. 

The U.S. Census Bureau has been tracking rental vacancy rates quarterly for over 40 years through its Housing Vacancy Survey. For this analysis, we pulled from their datasets to examine national trends, regional variation, and the effects of major economic shocks on local markets—comparing the first quarter of 2005 to the first quarter of 2026 to capture a full cycle of change. 

Today’s Vacancy Rates 

What is the Current U.S. Rental Vacancy Rate? 

In Q1 2026, the national rental vacancy rate sits at 7.3%—squarely within the healthy 5–8% range. This represents a modest climb from 7.1% in Q1 2025 and 7.2% in Q4 2025, suggesting the market is gradually loosening after years of historically tight conditions. 

Which State has the Lowest Vacancy Rate? 

Maine holds the lowest vacancy rate in the country at 2.5%. With a long history of underproduction, high construction costs, restrictive zoning laws, and an abundance of seasonal homes, there is a scarcity of available units. For landlords in Maine, this signals competitive market and shows how renters can be faced with an affordability crunch.  

Which State has the Highest Vacancy Rate? 

South Carolina leads the nation with a vacancy rate of 12.0%, well above the 5–8% range. A massive construction boom in metro areas like Charleston and Columbia, a surge in short-term rentals in coastal spots like Myrtle Beach, and a property tax structure that incentivizes buying and selling have all contributed to an oversupplied market.  

Rental Vacancy Rates by State 

Regional economic conditions, population growth, housing policy, and market dynamics create wide disparities in vacancy rates from state to state. Comparing Q1 2005 to Q1 2026 reveals how local markets have shifted over the past two decades and which regions have seen the most dramatic transformations. 

What the Data Means 

States like Colorado (-8.9 points), Georgia (-8.5) points, Kansas (-7.5 points) have seen the sharpest tightening over 20 years driven by population growth, job growth and, in some cases, constrained housing construction. In 2005, these states had vacancy rates that pointed to oversupply; today, they sit at or near the healthy range. 

The Southeast continues to trend toward elevated vacancy rates. Louisiana, South Carolina, Mississippi, Alabama, and Texas all remain above 10%, suggesting ongoing oversupply, affordability, or structural and economic factors that keep demand for absorbing available units.  

Rental Vacancy Rates by Metropolitan Area 

Zooming in to the city level tells a more granular story—one shaped by local job markets, population growth, new construction, and the long-term ramifications of events like the 2008 financial crisis and COVID-19 pandemic. The 75 largest metropolitan areas in the table below illustrate just how differently urban markets have evolved over the past two decades.  

What the Data Means 

Metropolitan vacancy rates data reveals dramatic vacancy changes countrywide, prompting a closer look at certain markets. 

Markets That Have Tightened Since 2005 

The biggest declines belong to cities that were overbuilt in the early 2000s and have since absorbed excess availability. The Raleigh, NC area dropped 14.2 points (from 19.2% to 5.0%), reflecting two decades of population growth and job creation. Hartford, CT fell 13.8 points to an incredibly low 0.6%—a near-zero vacancy rate that signals a critical shortage of units. Milwaukee (-9.9 points), Atlanta (-9.1 points), Tulsa (-9.3 points), Chicago (-7.5 points), and St. Louis (-8.0 points) all shed massive vacancy rates as the Midwestern and Upper Southern cities evolved into more stable rental markets. 

Markets with Rising or Problematic Vacancy Rates 

Several metro areas have seen vacancy rates climb above healthy levels. Syracuse, NY saw the largest jump in the dataset, surging from 8.4% to 23.5%—likely reflecting outmigration and a mismatch between availability and renter demand. Jacksonville, FL jumped 12.2 points to 20.6%, consistent with the Sun Belt’s broader construction boom and affordability challenges that drive renters out of the market. Birmingham, AL and New Orleans, LA both rose over 7 points; the latter still grappling with long-term displacement and rebuilding due to tropical storms and hurricanes. 

Midwestern Stabilization 

Cities like Akron, Cincinnati, Chicago, Cleveland, and Milwaukee all had vacancy rates above 10% in 2005—a sign of economic distress and oversupply in many Rust Belt markets. Two decades later, most of these areas sit comfortably within or near the healthy range, reflecting population stabilization and gradual economic recovery.  

Rental Vacancy Rates by Property Type 

Vacancy rates don’t just vary by location—they shift significantly based on property characteristics. Unit size, building age, structure type, and rent price point all influence how quickly units get absorbed in any given market.  

By Number of Rooms 

Very small units carry an enormous vacancy rate of 33.5%—a persistent structural feature of the market that reflects limited demand for micro-units. Mid-size units (4-6 rooms) are near the healthy range, showing the strongest rental demand. 

By Units in Structure 

Large apartment buildings (10+ units) are seeing rising vacancy, now at 9.5%. This aligns with the national wave of multifamily construction that has added significant new supply in many markets. Single-family and small multifamily rentals remain comfortably balanced. 

By Year Built 

Newly built units (2020 or later) carry an incredibly high vacancy rate of 33.0%, reflecting a wave of new construction. Buildings constructed between 2010 and 2020 are at 8.9%, while units built between 2000 and 2009 have normalized to a healthy 6.0%. Older housing (pre-1990) sits comfortably in the balanced range, suggesting a strong sustained demand for established properties.  

For investors, this pattern is a caution against over-relying on new development markets where supply has outpaced absorption. 

By Monthly Rent 

The lowest priced rentals (under $600 per month) have almost no vacancy (just 1.1–2.1%), confirming that affordable housing remains in desperately short supply nationwide.  

Mid-range units ($700-1,499) sit generally within or near the 5–8% mark, reflecting stable rental demand across the middle of the income spectrum. The $3,000 to $3,999 range has climbed to 10.0%, possibly highlighting oversupply in luxury apartment construction that has outpaced upper-income demand.  

Conclusion: What to Watch Moving Forward 

The national vacancy rate of 7.3% suggests a market in relative equilibrium heading into 2026—but the underlying data tells a far more complicated story. Beneath that headline number are markets near crisis-level tightness, others drowning in surplus supply, and property types at radically different points in the supply-demand cycle. 

For real estate investors evaluating new markets, policymakers addressing affordability, and landlords benchmarking their own performance, vacancy rates remain one of the most reliable early indicators of what’s coming next in the rental market. National trends set the context, while local and property-level data tell you where the opportunity—or the risk—actually lives.  

FAQs 

What is considered a healthy rental vacancy rate? 

A healthy rental vacancy rate generally falls between 5% and 8%, indicating balanced supply and demand with normal tenant turnover and stable rental conditions. 

What is the current U.S. rental vacancy rate? 

As of Q1 2026, the national rental vacancy rate is 7.3%, suggesting that the overall market is relatively stable. 

Which states currently have the lowest and highest rental vacancy rates? 

Maine has the lowest vacancy rate at 2.5%, indicating a tight housing market, while South Carolina has the highest at 12.0%, signaling a potential oversupply. 

Why do vacancy rates vary so much by location? 

Factors such as population growth, local economies, housing construction, zoning policies, affordability, and migration trends all influence vacancy rates across states and metro areas. 

How do property types affect vacancy rates? 

Newly built properties and large apartment buildings tend to have higher vacancy rates due to increased supply, while affordable rental units often have very low vacancy rates because demand remains strong.