The year-round vacancy rate stood at 10.5 percent in the first quarter of 2013. This is down from a peak of more than 11.0 percent in 2010, but still well above the vacancy rate in the years before the bubble. The vacancy rate was under 9.0 percent in the 1990s and less than 8.0 percent in prior decades. The high level of vacancies will limit the pace at which prices rise and starts increase in many areas. If a normal rate of starts is in the range of 1.4-1.5 million units, the sector is not likely to reach this pace until at least 2015.


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