Student Housing and Dining Services Strategic Plan2021

X. Appendix B: 2007 Davis Apartment Vacancy and Rental Rate Survey UC Davis Student Housing

The UC Davis Student Housing Department has conducted a Vacancy and Rental Rate Survey on apartments in Davis since fall quarter 1975. The purpose of this survey is to provide the campus and the Davis community with information for future planning.

The 2007 Vacancy Survey was conducted in October and November. Questionnaires were sent to all apartments in Davis with five or more rental units. Mailing of questionnaires coincided with the last day to add or drop classes to ensure the information solicited reflected final enrollment data. The vacancy report has remained consistent in reflecting data at the time of final registration and enrollment deadlines. Enrollment figures used are for fall quarter only and do not represent the academic year.

A total of 187 questionnaires were mailed. Apartment managers and owners who did not return the surveys were again contacted by phone and mail. In all, 172 of the 187 complexes participated by providing data. The total number of units in the 15 apartment complexes which did not respond is approximately 194. The surveys requested information on capacity, vacancies, and rent by type of market rate units. Type of unit denotes the number of bedrooms and whether the apartment is furnished or unfurnished.

Subsidized apartments, those which require an income eligibility test to qualify low-income residents for reduced rent, were not included in this report. Most students are not eligible for these units. While we have considerable confidence in our data collection and analysis, the reliability of the information reported is dependent upon the accuracy of information provided by the apartment owners and managers.

Construction of new complexes, conversions and demolition of some units, as well as non-participation in the survey by some apartment complexes, affects overall totals.

VACANCY RATES
The 2007 data reflect a vacancy factor for apartments in Davis of 0.7% overall. Table I illustrates the type and number of units currently rented in the city. For the purpose of this survey, if tenants have the option to rent a unit furnished or unfurnished, half of these are reported as furnished, and half as unfurnished.

TABLE 1. 2007 Vacancy Rate by Type of Unit - Fair Market Units Profile

Data Chart: lists 12 categories of available community apartments, broken down by bedroom totals and furnished versus unfurnished, how many of each are available, and how many of each are vacant. Most vacancy rates fall between 0 and 0.7%; two others are 1.7% adn 2.9%.

View Table 1 at full-size.

Economists and planners typically regard a vacancy rate of 5% as the ideal balance between the interests of the landlord and the tenant. This is largely predicated on the assumption that it serves as a deterrent to unjustified rent increases, while still allowing property owners to make a fair return on their investment. Likewise, it provides landlords an incentive to maintain facilities in good working order and gives renters a choice and an opportunity to negotiate contractual terms.

Table II provides historical data on UC Davis enrollment and the apartment vacancy rates for the past ten years.

TABLE 2. UC Davis Enrollment And Vacancy Rate - Historical Data

Data Chart: lists UC Davis enrollment, total available apartments in the city of Davis, and the vacancy rates for each year from 1997 through 2007; summary: enrollment grew from 24,299 to 30,685, apartments grew from 7591 to 8634, and the vacancy rate fluctuated between 0.2 to 4.2%, with 2008's rate being 0.7%.

View Table 2 at full-size.

RENTAL RATES
Table III reflects the percentage change in rental rates from 2006 to 2007 for all apartment types. The overall mean average increase was 4.18% in 2007. To draw any conclusions about the rate would require analysis of each property, since we report an average rate. Factors contributing to rental increases may include profit, overall inflation, utility rates, property sales, current or planned renovations, refinancing, and/or other expenses.

TABLE 3. 2007 Average Rental Rate Comparison By Type of Unit (Fair Market Units)

Data Chart: lists 12 categories of available community apartments, broken down by bedroom totals and furnished versus unfurnished, how many of each are available, their 2007 average rents, 2006 average rents, and the percent change in rent between 2006 and 2007. The percent change ranges from -0.57% to 5.96%, with a mean average (of all apartment types) of 4.18%.

This is a weighted average based on the number of units of each type. The apartment complexes with more units contribute more to this figure. View Table 3 at full-size.

The 2007 Davis Apartment Vacancy and Rental Rate Survey is subject to a variety of interpretations. It is our hope that the information provided in this report will provide a framework for future discussions concerning rental housing in the campus and Davis communities.