Vacancy in ACS vs Decennial

Hi. Data on vacancy status is not comparable between decennial Census data and ACS. I know there have been concerns over the accuracy of the ACS vacancy data. Is the decennial data from 2000 and 2010 considered more accurate?

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  • Another consideration is a factor not present in a significant way in 2010, which is the effect of AirBnB on vacancy rates. Communities with a large AirBnB presence are almost certainly going to have a higher vacancy rate now than in 2010, all other things factors being held equal. If this is the case on the community of interest then using a vacancy rate from 2010 to describe current conditions provides an incomplete picture of the situation. In the case of Cambridge, MA, where I work, I believe that AirBnB might be raising the rental vacancy rate by as much as 1-2%, which is huge in our market.
  • Thanks, Kathy, that's helpful. And Cliff, that is fascinating. According to ACS, vacancy increased by 67.03% in Cambridge from 2008-2012 to 2013-2017. I'm still concerned about the margins of error with that data, though.
  • Another factor in Cambridge is a lot of new apartment construction. This could affect vacancy in 2 ways.

    It is still unclear to me at what point the ACS begins to count a unit under construction as vacant. One definition I believe I have seen is when the unit is "tight to the weather", ie doors, widows and roof are in place. If this is accurate then we are going to have a lot of vacant units that aren't really habitable yet.

    The other factor is that when you drop 200-500 brand new units into a market at once then absorption takes time. If you multiply this by 3 or 4 buildings at a time on a rolling basis then you will probably see a boost in vacancy due to market friction, not a decline in need or desirability.