differences in homeowner vacancy rates, on the other hand, were much smaller than those for rental va

cancy rates. The percentages were 1.6 for the West, 1.7 for the South, 1.1 for the North Central Region, and 1.0 for the Northeast.

CHARACTERISTICS OF RENTAL AND HOMEOWNER VACANCIES

In many respects, vacant homeowner units differed greatly from vacant rental units. Vacant units for sale were generally larger than vacant units available for rent, were more likely to be single-family houses, and tended to remain vacant for a longer period of time.

Of the homeowner vacancies, about six-tenths (58 percent) had 3 bedrooms or more; nine-tenths (87 percent) were single-family houses; and about four-tenths (43 percent) had been vacant for at least six months. Of the rental vacancies, only a few (10 percent) had 3 bedrooms or more; about three-tenths (27 percent) were single-family houses; and three-tenths (27 percent) had been vacant for six months or longer.

The results on year structure built show that proportionately more of the vacant homeowner units than rental units were located in recently built structures. One-third of the vacant units for sale in the fourth quarter 1965 were built in 1960 or later. In comparison, about one-fifth of the rental vacancies were in recently built structures.

The level of quality was higher for vacant for-sale units than for vacant for-rent units. Nine-tenths (90 percent) of the for-sale vacancies had all plumbing facilities--hot running water, private flush toilet, and private bath. In comparison, eight-tenths (79 percent) of the rental vacancies had these facilities.

On the average, rental vacancies lacking facilities were smaller units and had been vacant a longer period of time than rental vacancies with all facilities. The bulk of the units lacking facilities were located in structures built before 1940. For rental vacancies, the median monthly rent asked was $67. Rentals for approximately three

tenths of the vacancies included amounts for all utilities--heat, water, light, and cooking fuel.

The median price asked for homeowner vacancies was $13,000. Vacancies for sale include houses that have been previously occupied as well as units not previously occupied; the latter group constituted about one-fourth of the "for sale" group.

Data on rent and price asked exclude units in rural areas that were located on places of 10 acres or more. Data for such units were not obtained because of the difficulty of separating the amount for the housing unit from the amount for the land.

The trend in rent or price asked for vacant units does not necessarily reflect the change in the general rent or price level. The rent or price asked is for available vacant units and may not represent the rent level of renter-occupied units or the current value of owner-occupied homes. Further, the rent or price is the amount asked at the time of enumeration and may differ from the rent contracted for or the selling price.

Compared with a year ago, there are few differences in the characteristics of vacant housing units. There is some evidence of a slight increase in the sale price asked for vacant singlefamily homeowner units. The median sale price asked was $13,000 in the fourth quarter 1965 and $12,400 in the fourth quarter 1964.

VACANT UNITS NOT ON THE MARKET

The rental and homeowner vacancy rates describe the market conditions for available vacant housing. To analyze the total vacancy situation, vacant units not on the market must also be considered. Vacant units not on the available market comprise units that have already been rented or sold, units held by the owner, dilapidated units, and vacant units intended only for seasonal occupancy.

Of all housing units in the United States in the fourth quarter 1965, approximately 0.5 percent were vacant units which had been rented or sold but not yet occupied (and were for year-round use and not dilapidated). The proportion of such units did not differ from one region to another.

Units held off the rental or sale market (and for year-round use and not dilapidated) amounted to 3.0 percent, about the same as the rate for the preceding quarter. The rates showed little variation among the North Central, South, and West Regions. The percentages were 2.9 for the North Central Region, and 3.6 for the South and for the West. The rate continued to be lowest in the Northeast, where it was 2.0 percent. The proportion for units held off the market was substantially lower in metropolitan areas than in the nonmetropolitan territories.

The "held off market" group includes units reserved for the owner's use as a second home, units temporarily not on the market for personal reasons of the owner, and units not offered for rent or sale because they are located in places where there is little demand for them. The owner's intended use of the unit may change from time to time, so that a vacant unit may shift into and out of the "held off market" category.

Year-round vacancies which were dilapidated constituted 0.7 percent of the total housing. These vacancies were found largely outside SMSA's.

Seasonal units which were vacant accounted for 2.9 percent of the total housing inventory. Vacation homes for summer or winter recreational

use

comprised approximately nine-tenths

of the

total seasonal units. The remaining one-tenth consisted of cabins and houses reserved for loggers, herders, or migratory farm laborers who would occupy the quarters during the work season.

The percentage of all housing units that are vacant and available for rent and the percentage available for sale in table C do not show any smaller vacancy supply than that indicated by the rental and homeowner vacancy rates in table A; they merely reflect different bases, as shown in table D. The rental vacancy rate, 7.7 percent, expresses the relationship between vacant housing that is offered for rent and the total rental supply. Similarly, the homeowner vacancy rate, 1.4 percent, expresses the relationship between vacant housing offered for sale and the total homeowner supply. The available-for-rent rate of 2.7 percent and the available-for-sale rate, 0.8 percent, based on total housing units, which comprise rental units, homeowner units, and all vacant units.

are

Table D.--OCCUPANCY AND VACANCY RATES: FOURTH QUARTER 1965

TENURE OF OCCUPIED HOUSING UNITS

During the fourth quarter 1965, approximately 63.4 percent of all occupied units in the United States were occupied by their owners, which is approximately the same as the rate reported for the fourth quarter 1964.

The North Central Region, with 68.4 percent, had the highest rate of owner occupancy and the South, with 65.4 percent, ranked second. The West and Northeast followed, with 59.5 percent and 58.4 percent, respectively.

As in previous quarters, homeownership was less prevalent in metropolitan areas than in territory outside these areas. Inside SMSA's, the owner-occupancy rate was 60.3 percent; whereas outside these areas, the rate was 69.3 percent.

Table E.--OWNER-OCCUPANCY RATES, FOR THE UNITED STATES, INSIDE AND OUTSIDE STANDARD METROPOLITAN STATISTICAL AREAS, AND REGIONS: 1965, 1964, AND 1960

ANNUAL AVERAGE VACANCY RATES

Rental vacancy rate.--During the decade 1956 to 1965, the national vacancy rates in rental housing increased during the first six years, shifted downward in 1962, and remained remarkably stable from 1962 to 1965. The rental vacancy rate rose from 5.5 to 7.4 between 1956 and 1960, hit 7.9 in 1961, then dropped to 7.4 in 1962, and remained unchanged through 1965.

Inside standard metropolitan statistical areas, the rental vacancy rates continued upward during the 10-year period, increasing from 4.5 in 1956 to 7.4 in 1965. Outside metropolitan areas, the trend movement was more erratic. The rate moved upward between 1956 and 1961, reversed direction in 1962 and declined through 1964, then shifted upward in 1965. The rate stood at 7.4 in 1956, 9.6 in 1961, 8.7 in 1962, 7.3 in 1964, and 7.9 in 1965.

The rental vacancy rates show different patterns by geographic region. In the Northeast, which ranks lowest among the regions, the rates moved slowly but consistently upward during the

PERCENT

12

10-year period. In the North Central Region, the rates moved generally upward between 1956 and 1961, followed by a consistent downward trend through 1965. In the South and the West, the rental vacancy rates stood well above the national level. The rates in the South increased sharply between 1956 and 1961 but trended downward between 1962 and 1965. In the West, the rental vacancy rates showed considerable fluctuation, with sharp decreases in 1957 and 1962. Nevertheless, an overall upward trend is apparent over the 10-year period.

Homeowner vacancy rate.--The vacancy rates among homeowner units were substantially lower and much less changeable than the rates for rental units. Between 1956 and 1965, the trend movement in homeowner vacancies was slowly upward. The rate was 0.9 percent in 1956, 1.2 in 1960, 1.4 in 1963, and remained unchanged through 1965.

Homeowner vacancy rates inside SMSA's were slower growing than the rates outside SMSA's. Both inside and outside metropolitan areas, however, the trend in homeowner vacancy rates closely followed the national pattern, with the rates inside