Definition of Vacation Rate
Vacancy rate is the percentage of built space in the markets that are currently unoccupied or are available for rent.
Vacancy rate determines supply and demand in the real estate market. Though high vacancy rate is undesirable, both tenant and landlord require time to search for a good deal or respective counter-parties that are suitable to both of them. This leads to vacant space in the real estate market. Normally when the actual vacancy rate outstrips the normal vacancy rate, the landlord reduces the rent and vice versa.