A sluggish job market and weak wage growth help keep rent growth at just 0.8 percent, however, well below the level usually associated with such low vacancy rates. “While national rent growth remains low relative to vacancy, there are a number of markets where rents continue to boom such as Seattle, San Francisco, San Jose and Oakland-East Bay,” the report said.
New Haven ranked as the city with the tightest vacancy rate at 2.2 percent. San Diego, San Jose and New York came in at numbers two, three and four, respectively. With more housing supply coming online, Reis expects vacancies to increase slightly in 2014 while rents rise by roughly 3.3 percent.