by Calculated Risk on 12/31/2009 05:14:00 PM

From USA Today: Apartment renters win as vacancy rate climbs (ht Brian)

Rents fell a record 3.5% in 2009 after factoring in freebies, according to MPF Research. MPF projects prices will fall an additional 2% next year ...

"I've been at this 35 years, and it's by far the worst I've seen it," says Jeff Cronrod of the American Apartment Owners Association.

Nationwide, apartment vacancy is 7.8%, up from 4.8% at the end of 2007, says MPF Vice President Greg Willett.

Note: Reis reported the apartment vacancy rate at a 23 year high 7.8% at the end of Q3 2009, and the Census Bureau reported the total rental vacancy rate at a record 11.1%.

The article notes that the supply of rental units is growing as investors buy homes to rent for cash flow and some "homeowners who want to move but can't sell their houses because they're worth less than their mortgages are renting them out instead."

Hey, who does that remind you of? (hint)