Despite a seemingly overheated housing market catapulted by rising mortgage rates and delayed construction, over 16 million homes across the country are sitting vacant, according to Forbes. States like Vermont, Maine, and Alaska are reporting the highest vacancy rates of 22.86%, 22.68%, and 20.51%, respectively, but these properties aren’t all abandoned and dilapidated.
Some unoccupied units are on the market to be sold or rented, and others may be vacation homes not currently in use, but regardless of the types of homes that account for high vacancy rates, an overabundance of unused housing supply can provide insight into regional homebuying.
He said this means there are many other factors in play that help dictate home price, like location, the kind of rates being offered to borrowers, square footage and the reasons why homes are sitting unoccupied — to name a few.
“Because of this, vacancy rates alone can’t fully explain why homes are so expensive,” said [Jacob] Channel. “But that doesn’t mean that vacancy rates are unimportant. Understanding an area’s vacancy rate can help shed light on how buyers and homeowners behave.”