What's a healthy vacancy rate? - WeAreTPM

Episode 98

What's a healthy vacancy rate?

In this episode of "We Are TPM," hosts Kyle and John Teixeira dive into the intricacies

of understanding a healthy vacancy rate in real estate markets. The discussion extends

to how vacancy rates vary between different property types and across various

regional markets. The episode is packed with practical advice for real estate investors

looking to optimize their portfolios and maintain healthy vacancy levels.

Key Takeaways:

• Understanding Vacancy Rates: A balanced vacancy rate is crucial for maintaining

market stability. It typically ranges between 5-8%, with deviations indicating potential

market adjustments.

• Effects of Fluctuating Vacancy Rates: Low vacancy rates can drive up rents, leading

to unaffordability, while high rates may result in rent concessions and decreased

landlord profitability.

• Market Dynamics: The North Texas rental market is examined, revealing a 7.1% rate

influenced by regional development trends and socio-economic factors.

Notable Quotes:

• "Investors obviously love low vacancy rates, but most of them don't think about the

pendulum 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 it

should 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 have

enough supply. Rents are going to go up to a point of unaffordability." - John Teixeira

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We Are TPM

Teixeira Property Management

Mansfield, Texas

www.WeAreTPM.com

ShowMeTheMoney@WeAreTPM.com

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There are a vast amount of ways in today's world to build wealth using real estate and

investing, not just in property, but in yourself!

Located in the Dallas-Fort Worth area of Texas, John Teixeira and Kyle Teixeira of

Teixeira Property Management bring you all of the knowledge and experience they can

provide for the confidence to achieve your investment goals, or how and why to create

them. Now, while John and Kyle have a ton to share, they will also be bringing you

interviews with some of their clients, industry partners, experienced investors, and

much more every week!

John and Kyle look forward to sharing the knowledge you need about arguably the

greatest investment vehicle that is available to the masses — Real Estate. Knowledge

is power, and John and Kyle intend to give you as much power as possible. It's not

always about the HOW, but also the WHY, and they will be digging into it right here

every week

About the Podcast

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Building Wealth through Real Estate and Rental Portfolio Investing

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