After experiencing three sluggish years, owners of apartment building and other similar rental units finally have a reason to celebrate. A report released by Reis Inc. showed that the country’s apartment vacancy rate fell in the second quarter of 2010. The decline was said to be the first in almost three years.

The report showed that the national apartment vacancy rate slipped from 8% in the first quarter to 7.8% in the second quarter of the year. Reis director for research Victor Calanog said despite the small decline, the latest development is an indication that the apartment market is on its way to recovery. “Unless there’s significant softness in the economic recovery, we may be safe to say that the apartment sector is well on its way,” he added.

Calanog also has good news for landlords and property managers. He said that they could raise rents by at least 4.6% next year if the economy continues to show signs of improvement and demand exceeds new supply.  Several months ago, most landlords were reluctant to impose higher rents amid economic and unemployment woes, records showed. In the second quarter of the year, asking rents jumped by only 0.4% from the first quarter to a national average of $1,031 a month.

In addition, the market analyst stressed that the creation of jobs plays a vital role in the recovery of the apartment sector. “In general, 12 months ago, when the world was ending, and it might take you over a year to find a job, you were not going to leave your parents’ apartment. But now that it might take you from three-to-six months to find a job, you might feel confident enough to lease your own space,” he said.

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