Rental vacancy rose to 7.6% while owners’ median equity reached $230,000
Homeownership is holding near 66%, but landlords have more empty units than a year ago, according to new Census and Fed data.
By Alex Pham · · 3 min read
The national rental vacancy rate reached 7.6% in the third quarter, with a 90% confidence range of 7.3% to 7.9% [1]. The rate stood at 6.6% in early 2024 [1].
Homeownership came in at 65.5%, which Census said was “not statistically different” from 65.3% a year earlier [1].
Rental vacancy is higher than a year ago in all four regions
The South has the most empty rentals at 9.2%, close to its rate a year earlier, while the Northeast had the largest increase [1]. The median asking rent on vacant units was $1,541 [1].
Homeownership fell for householders under 45 and rose for those 65 and older
The rate for householders under 35 was 36.6%, almost a point below a year earlier [1]. Census margins of error on these age groups run from 0.5 to 0.7 points [1].
Owners hold more equity, and more families are stretched on debt payments
The Fed’s Survey of Consumer Finances, released in October, put the median value of an owner’s home at $375,000 in 2025, up 6% from 2022 [3]. The share of families whose debt payments exceed 40% of income reached its highest level since the 2013 survey [2].
| Survey of Consumer Finances | 2022 | 2025 |
|---|---|---|
| Owners’ median net housing value | $218,900 | $230,000 |
| Median home-secured debt, families with it | $170,200 | $183,600 |
| Families with debt payments above 40% of income | 6.5% | 8.6% |
| Families owning residential property beyond their home | 12.9% | 13.8% |
| Families owning their primary residence | 66.1% | 65.6% |
How to use this
For landlords and rental investors
- Price each renewal offer against the cost of a vacant month. At the national median asking rent of $1,541 [1], one empty month costs about 8.3% of a year’s rent by our math, so compare that with the increase you planned before you send the letter.
- Update the vacancy assumption in your underwriting to your region’s current rate. The South is at 9.2% [1], and we calculate that the Northeast rate rose 1.2 points in a year [1], so a model built on 2025 numbers could overstate income.
For builders and sellers who rely on first-time buyers
- Lead with a rate buydown in your marketing to younger buyers, whose ownership rate is 36.6% [1]. On the median asking price of $353,600 for vacant homes for sale [1], with 10% down, we calculate principal and interest at about $2,169 a month at the 7.24% average rate [4] and about $1,957 at 6.24%.
- Show buyers the payment next to the price. The Fed found that the median home was worth more than 4.5 times median family income in 2025, about the same as in 2022 [3].
For lenders and investors
- Screen home-equity and cash-out borrowers for payment strain as well as equity. Median net housing value is $230,000 [2], yet 8.6% of families now spend more than 40% of income on debt payments [2].
- Market second-property and small rental loans to existing owners with equity. The share of families owning residential property beyond their main home rose to 13.8%, and the median value of that property rose 14% to $280,000 [3].
This is market commentary, not investment advice.
Sources
- [1]U.S. Census Bureau, Quarterly Residential Vacancies and Homeownership, Third Quarter 2026, Oct 28, 2026.
- [2]Federal Reserve Board, Federal Reserve Board releases results of the 2025 Survey of Consumer Finances, Oct 9, 2026.
- [3]Federal Reserve Board, Changes in U.S. Family Finances from 2022 to 2025, Oct 9, 2026.
- [4]Freddie Mac, Primary Mortgage Market Survey, week of October 29, 2026, Oct 29, 2026.
