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8 rental markets in the midst of a full-blown vacancy crisis

The , but several major metros have climbed well above that level. Some are now demonstrating rates above 10%, 12%, and even 15% as supply outpaces renter demand.

compiled a list of the eight markets that show the clearest signs of a rental vacancy crisis, with effects that extend well beyond individual landlords and empty units. Rental owners in these markets can’t afford to treat vacancy as a waiting game. They need to act quickly and strategically to keep units filled.

When a vacancy rate becomes a crisis

The National Collaborative on Childhood Obesity Research (NCCOR) says that a good rental vacancy rate is . This range allows sufficient turnover for renters to find options without landlords shouldering consistent losses on empty units.

When rates climb past 8%, the story changes. Sustained vacancy above that threshold typically indicates excess supply, weaker demand, or both. The effects can spread quickly to property owners, local housing quality, and neighborhoods as a whole.

The financial cost to individual owners arrives fast. (the income a landlord loses while a unit sits empty) compounds since carrying costs continue regardless of occupancy. Left unchecked, that financial pressure can feed a full-blown vacancy crisis.

8. San Antonio, Texas

, placing it among the top 30 highest-vacancy major U.S. metros. Dallas-Fort Worth and Houston both sit in the 8%-9% range, showing a widespread pattern of supply growth outpacing demand across Texas.

San Antonio built aggressively on the assumption that would continue at a postpandemic pace, but that pace has slowed. New housing supply continues to arrive faster than renters can fill it, especially as they weigh affordability, job stability, and better lease incentives elsewhere.

(move-in deals like a free first month or a reduced security deposit) are becoming more common across San Antonio’s market as buildings compete for tenants. Independent landlords managing older units can compete by offering quick responses and flexible lease terms, advantages that larger operators rarely match.

7. Austin, Texas

, the highest recorded figure in more than 20 years. from their August 2022 peak, landing at $1,425 a month by mid-2025.

Austin permitted more than 20,000 apartment units annually from 2019 to 2022, and those projects entered a market where demand growth had since stalled. and higher borrowing costs weakened inflows of new residents and eroded renter affordability, pushing vacancy rates from near-record lows to a 20-year high in under four years.

Further, Austin’s construction surge has slowed dramatically since 2023, meaning the oversupply should fill faster than in markets still in peak delivery cycles. For landlords who financed during the 2021-2022 peak, staying occupied at today’s market rates can limit vacancy losses and build a tenant base for recovery as new supply slows.

6. Savannah, Georgia

, but the more telling figure is the historical gap. Recent data shows Savannah sits 4.9 percentage points above its five-year average of 6.3%, the largest break from past norms of any market in the analysis.

Savannah’s vacancy spike closely tracks industrial expansion. The Hyundai electric vehicle manufacturing plant that opened in nearby Bryan County in 2024 helped drive a wave of housing construction tied to its expected workforce growth. That workforce has arrived more slowly than projected, however, leaving new units without renters to fill them.

Vacancy driven by a temporary supply overshoot tends to correct faster than vacancy rooted in population decline. Savannah landlords who secure tenants now can look forward to a stable base ahead of the Hyundai workforce ramp-up, which could gradually tighten the market and bring vacancy numbers back down.

5. Charleston, South Carolina

, the fifth-highest among major U.S. metros. South Carolina has the .

Charleston’s growth through 2022 drew a major influx of multifamily investment. New apartment buildings permitted during that boom are now entering and fewer new households are being formed. Older properties with repair backlogs are struggling the most as renters opt for newer inventory elsewhere.

Charleston’s high vacancy rate appears to be mainly a problem, and conditions should improve as new projects slow. Independent landlords competing with new inventory can lease units faster when properties are move-in ready, cleanly presented, and priced competitively against comparable units that are actually renting.

4. North Port-Sarasota-Bradenton, Florida

, one of the highest rates among major U.S. metros. Overall rental vacancy in the metro jumped a staggering 87% year over year, according to of Census Bureau data, the steepest percentage spike tracked nationally.

The region absorbed a large construction wave from the postpandemic in-migration surge, and that renter pool has since thinned. Hurricane Ian’s damage in 2022 , pushing some long-term renters toward lower-priced inland markets.

Landlords here now face a smaller renter pool, higher operating costs, and more competing inventory. To fill vacancies, property owners should stage each unit, use professional-quality photos, and factor post-Ian insurance costs into the list price. In a market this competitive, presentation gaps can cause prospects to move on to the next listing without a second look.

3. Memphis, Tennessee

, among the highest of any major U.S. metro. Demand turned positive in 2024 for the first time since 2021, yet vacancy remains well above the national average.

has separated Memphis from peer metros in the South that have captured more migration and corporate investment over time. The city’s older, high-vacancy rental housing stock competes with newer buildings offering updated amenities, further reducing renter demand.

Unlike markets where vacancy is mainly a construction problem that can correct on its own, Memphis faces a longer recovery rooted in a shrinking renter population. In markets like this, tenant retention is one of the most practical ways to protect cash flow. Owners who invest in condition upgrades, offer modest renewal incentives, and hold rents at competitive levels can reduce the turnover that adds to vacancy losses over time.

2. Birmingham-Hoover, Alabama

, the second-highest among major U.S. metros, with a 23.8% year-over-year increase. Birmingham’s vacancy stems from a long-term shift in the city’s renter base. , .

The rental vacancy crisis has been building for years, driven by renter demand that shrank faster than the housing stock could adjust. That imbalance has left the metro with chronically vacant units. For perspective, a 10-unit building listed at loses over $1,400 per vacant unit each month before carrying costs even kick in.

Landlords under cash-flow pressure cannot wait for a quick supply correction. In a smaller renter pool, holding rents competitively and rewarding reliable tenants with modest renewal incentives can help keep income steadier and reduce turnover.

1. Cape Coral-Fort Myers, Florida

. Despite that oversupply, , a sign that high vacancy rates still have not made the market affordable for many renters.

As with North Port-Sarasota-Bradenton, Hurricane Ian’s damage displaced thousands of long-term renters and triggered sharp spikes in property insurance premiums across Southwest Florida. New multifamily development already in the pipeline before the storm continued entering a smaller, more financially stressed renter pool, leaving many operators with thin reserves.

Landlords with tight margins face fewer qualified renters and higher carrying costs. Rent concessions can help offset vacancies, but they cannot solve the underlying affordability squeeze. with up-front rent and utility information can help landlords reduce hesitation among cost-burdened renters before they opt for a competing property.

How rental property owners can navigate high vacancy rates

Soft markets reward property owners who move quickly. Landlords who protect their rentals in these eight markets , respond to leads within minutes, and price each property against what nearby units are actually renting for today.

And a makes competitive pricing easier by benchmarking a unit against comparable properties before the listing goes live.

in soft markets matters as much as it does in tight ones. Approving a candidate too quickly to fill a vacancy can lead to a problem tenancy that causes months of lost time, added costs, and future turnover.

Landlords who fill units faster also create from the first inquiry onward. Fast responses, clear expectations, organized paperwork, and respectful communication can help convert qualified leads and support a positive tenant experience after move-in.

How these markets were identified

Vacancy data was drawn from three primary sources:

and provided additional geographic context.

Construction Coverage figures draw from the most recent available Census Housing Vacancies and Homeownership survey. CoStar and ApartmentData.com figures reflect the most current multifamily market data available at the time of publication. Year-over-year comparisons use the same source for each market.

Rankings reflect three factors: the absolute vacancy rate, the year-over-year rate of change, and the gap from each metro’s five-year historical average. Metro areas with fewer than 50,000 renter households were excluded from consideration.

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