What's a healthy vacancy rate?

31/05/2025 27 min Episodio 98
What's a healthy vacancy rate?

Listen "What's a healthy vacancy rate?"

Episode Synopsis

In this episode of "We Are TPM," hosts Kyle and John Teixeira dive into the intricaciesof understanding a healthy vacancy rate in real estate markets. The discussion extendsto how vacancy rates vary between different property types and across variousregional markets. The episode is packed with practical advice for real estate investorslooking to optimize their portfolios and maintain healthy vacancy levels.Key Takeaways:• Understanding Vacancy Rates: A balanced vacancy rate is crucial for maintainingmarket stability. It typically ranges between 5-8%, with deviations indicating potentialmarket adjustments.• Effects of Fluctuating Vacancy Rates: Low vacancy rates can drive up rents, leadingto unaffordability, while high rates may result in rent concessions and decreasedlandlord profitability.• Market Dynamics: The North Texas rental market is examined, revealing a 7.1% rateinfluenced by regional development trends and socio-economic factors.Notable Quotes:• "Investors obviously love low vacancy rates, but most of them don't think about thependulum swing that's going to come back." - Kyle Teixeira• "You put your home out there at a certain price because you think that's the price itshould be at. The market says no because no one goes to look at it." - John Teixeira• "So if we have a rate that's too low, so let's say below 5%, then you don't haveenough supply. Rents are going to go up to a point of unaffordability." - John TeixeiraListen to We Are TPM on any major podcast platform including Apple Podcasts,Google Play, Spotify, and many more.Tune in today!We Are TPMTeixeira Property ManagementMansfield, [email protected]———————————————————————————There are a vast amount of ways in today's world to build wealth using real estate andinvesting, not just in property, but in yourself!Located in the Dallas-Fort Worth area of Texas, John Teixeira and Kyle Teixeira ofTeixeira Property Management bring you all of the knowledge and experience they canprovide for the confidence to achieve your investment goals, or how and why to createthem. Now, while John and Kyle have a ton to share, they will also be bringing youinterviews with some of their clients, industry partners, experienced investors, andmuch more every week!John and Kyle look forward to sharing the knowledge you need about arguably thegreatest investment vehicle that is available to the masses — Real Estate. Knowledgeis power, and John and Kyle intend to give you as much power as possible. It's notalways about the HOW, but also the WHY, and they will be digging into it right hereevery week