Definition of Vacancy Rate
The vacancy rate is the percentage of unoccupied or empty units that are available for rent or lease. This rate measures the number of empty units in a city, within a building or complex, or in a hotel or another guest-lodging business.
Why is this term important?
Typically, the vacancy rate is used to determine the number of available units in a rental property. It is the opposite of the occupancy rate. Property owners can use the vacancy rate as a way to analyze properties and areas. For example, changes in vacancy rates and average lengths of occupancy can show whether or not some areas or units are more competitive than others in the real estate marketplace.
Examples of term
If a hotel has 20 rooms and 10 are empty, the hotel has a 50% vacancy rate.