Part 2 Tri-Cities rental situation – fewer single-family units, higher vacancy rates


There were more rental property vacancies in over than half of the Tri-Cities region’s zip code during the third quarter of this year than last year. And a comparison of non-owner-occupied investment properties shows there are about 11,000 fewer rental properties than last year.

Earlier this month the first part of a third-quarter analysis of the area rental property status show signs of both strength and weakness in the local rental marketplace. That report can be found HERE . The overall situation was an average return on investment was down from last year, but not to an alarming degree. It also pointed out that the number of large apartment complexes had increased, and that investors are closely watching Sullivan County where local governments have goosed the apartment complex supply in hopes of attracting new residents. Data for the analysis is single-family properties. That report also capsuled current rents and the 2018 HUD Fair Market Rents.

Thanks to Attom Data Solutions Q3 Residential Vacant Property and Zombie Report we have a Part 2 look at the rental situation.

That report shows there were a little more than 111,000 non-owner-occupied investment properties in the region. During the same period last year, there were about 122,000. In the third quarter, 4,787 of them were vacant. During the same period last year, there were 4,321 vacancies.

The biggest increase in vacancies from Q3 last year was reported in Johnson City’s 37615 area. This year there were 113 vacancies compared to 34 in Q3 last year. Big increases were reported in Elizabethton (37643) and Kingsport (37660, 37664 and 37663).

The median vacancy rate for the Northeast Tennessee zip codes was 4.5% (4.6% last year) and 0.14% in SW Va. (0.24% last year) The 10.3% rate in Bristol, VA stood in stark contrast to the other areas where very low or zero vacancy rates were noted. But even that high rate was down from last year when there were 287 vacancies compared to 259 this year.

Midway in Greene County had the region’s highest rental vacancy rate of 9.3% followed by Bulls Gap 8.9 % and Rogersville 8.2%.

The lowest three rates in the NE Tenn. zips was Limestone 1.4%, Roan Mountain 1.5% and Bluff City 1.9%.

Vacancy rates in the primary Johnson City zip codes ranged from 3.97% in 37604 to 3.27% in 37601.

In Kingsport the ranged from 7.43% in 37665 to 4.27% in 37664.

 

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