Top U.S. Cities Facing Increasing Vacancy Rates
As more abandoned buildings and foreclosed signs dot the streets of neighborhoods across the country, two U.S. metro areas have been hit hardest by the housing market meltdown. Forbes.com recently reported that Las Vegas edged out the Detroit for the title of America's most abandoned city.
Atlanta came in third, followed by Greensboro, N.C., and Dayton, OH. Their rankings, a combination of rental and homeowner vacancy rates for the 75 largest metropolitan statistical areas in the country, are based on fourth-quarter data released Feb. 3 by the Census Bureau. Each was ranked on rental vacancies and housing vacancies; the final ranking is an average of the two.
Metro declines and growth
Rapid industrial decline over the last decade has paralyzed the economic growth of cities like Detroit and Dayton. Others, like Las Vegas and Orlando, are mostly victims of the recent housing down turn. Boston and New York are among the lone bright spots, while Honolulu is the nation's best with a vacancy rate of 5.8% for homes and a scant 0.5% for rentals, according to Forbes.com.
Forbes reports that empty neighborhoods are becoming an increasingly daunting problem across the country. The national rental vacancy rate now stands at 10.1%, up from 9.6% a year ago; homeowner vacancy has edged up from 2.8% to 2.9%. Richmond, Va.'s rental vacancy rate of 23.7% is the worst in America, while Orlando's 7.4% rate is worst on the homeowner side. Detroit and Las Vegas are among the worst offenders by both measures — the Motor City sports vacancy rates of 19.9% for rentals and 4% for homes; Sin City has rates of 16% and 4.7%, respectively.
From boom to bust
Detroit rose to fame as an automobile giant when Henry Ford built his first Model T automobile in 1904. William Durant, the Dodge brothers and Louis Chevrolet quickly followed, elevating Detroit to prominence as the nation's automobile capital. Although many of these factories have since relocated, Detroit still remains the hub for General Motors, one of the world's largest car makers. Many economist blame rapid suburbanization, outsourcing of manufacturing jobs and a lack of economic diversity for the city's precipitous decline.
While Las Vegas is uniquely different from Detroit, it is still yet to be seen if the 'Entertainment Capital of the World' will be able to fully recoup from the housing market bust and regain its title as the fastest growing city in the country.
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