What does the term 'vacancy rate' refer to in real estate?

The term 'vacancy rate' is a crucial metric in real estate that specifically refers to the percentage of unoccupied rental units in a property relative to the total number of rental units available. It provides insight into the level of demand for rental spaces and helps property managers and owners understand how effectively their property is performing in the rental market.

Calculating the vacancy rate involves dividing the number of vacant units by the total number of rental units and then multiplying by 100 to express it as a percentage. A high vacancy rate may indicate issues such as overpricing, property conditions, or market saturation, while a low vacancy rate generally signifies a healthy demand for rentals.

The other options describe different aspects of rental properties. Occupied units pertain to the fill status of particular rentals, the time taken to fill a unit reflects leasing efficiency, and total rental units refer to the overall capacity of a property rather than focusing on vacancies. Each of these metrics plays a role in understanding property performance, but they do not define the vacancy rate itself.