Rental vacancy rates in the U.S. 2000-2023, by region

The vacancy rate of rental housing units in the South region of the United States was equal to 8.7 percent in the fourth quarter of 2023. This means that nearly nine percent of the available rental housing units were vacant in that quarter. The Midwest had the next highest vacancy rate, followed by the Northeast and then the West. The vacancy rates have fallen in all regions since 2014, but the regional differences still remain. 

Why does this divide exist?

The share of the U.S. population living in the Midwest and the South has been decreasing over the past few decades, whereas the Northeast and the West are experiencing greater population growth. These demographic changes mean that demand for housing declined in the former and increased in the latter. The Northeast and the West contain more large urban areas, which attract more residents than rural areas due to greater employment opportunities, among other reasons. The median sales prices of homes are greater in the Northeast and West than in the other two regions. The rate at which prices in the regions with higher prices are growing is also faster.