In the News: The Housing Market
According to the Wisconsin State Journal article, "The housing market: How Madison got in this tight spot with homelessness" -
"The sweet spot for rental vacancy rates in the U.S. is 5 percent. Madison's has not been that high since 2007 and currently is 2.43 percent. Of the 75 largest metropolitan areas, only two — Richmond, Virginia, and Knoxville, Tennessee — have tighter markets, according to U.S. Census Bureau data.
Many factors contribute to this low-vacancy rate. The 2007-09 recession slowed new construction while rapidly creating more renters — some by choice, others because of foreclosure. Construction of new apartment buildings has come roaring back, but area developers are playing catch-up.
A study commissioned by Dane County last year concluded the county needs to produce between 16,000 and 31,000 low-cost housing units in the next 26 years to meet existing and future needs. In Madison, virtually all of the post-recession increase in supply has been in units unaffordable to households making less than $40,000, said Matt Wachter, the city's housing initiatives specialist."
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