the amount of rent asked at the time of enumeration, not what could be provided for more or less rent. Data on the inclusion of utilities are limited to nonfarm available vacant units for rent.

Sale price of 1-dwelling-unit structures.--The sale price is the amount asked for the property, including the structure and its land. Value data are limited to vacant nonfarm units in 1-dwelling-unit structures, without business, and with only one dwelling unit included in the property. The statistics on sale price for this report are limited to nonfarm available vacant units for sale. Values for other available units for sale are not provided because they would reflect varying amounts for farm land, business uses, or for more than one dwelling unit in the property.

The median sale price of the dwelling units is the amount which divides the series into two equal parts, one-half of the units with prices higher than the median and the other half with prices lower than the median. The median was computed on the basis of more detailed tabulation groups than are shown in the tables and was rounded to the nearest hundred dollars.

from results that would have been obtained from a complete count in which identical enumeration techniques were employed. The standard error is a measure of sampling variability. The chances are about 68 out of 100 that the difference due to sampling variability between an estimate and the figure that would have been obtained from a complete meration is less than the standard error. The chances are about 95 out of 100 that the difference is less than twice the standard error and about 99 out of 100 that it is less than 2 times the standard error.

enu

SOURCE AND RELIABILITY OF DATA

The estimates for 1956 and 1955 presented in this report are based on data obtained in connection with the monthly population sample survey of the Bureau of the Census. The sample for the 1955 surveys and for January through April 1956 was spread over 230 sample areas comprising 453 counties and independent cities. In May 1956, the sample was expanded to 330 areas comprising 638 counties and independent cities. In the expanded sample, a total of approximately 42,000 dwelling units and other living quarters were designated for the sample each month. of this total, 35,000 to 37,000 were occupied dwelling units; about 3,500 were vacant dwelling units; and the remainder were units which, at the time of enumeration, had been converted to commercial use, had been demolished, etc., or were not living quarters within the scope of the survey. Detailed

information was obtained for each vacant unit in the sample.

The data for 1950 are based on the returns of the 1950 Census of Housing and represent the results of a complete enumeration.

Since the 1956 and 1955 statistics presented in this report are based on a sample, they are subject to sampling variability and may be expected to differ

Comparison of characteristics of vacancies for the second quarter 1956 with those for previous quarters (Series H-111, Nos. 1 to 4) reveals that

many of the differences are small. A small difference, particularly when it is based on a small subclass of vacant dwelling units, should be interpreted with care. As can be seen from the table above, the sampling variability in such cases may be large relative to the difference.

In addition to sampling variability, the data are subject to biases due to errors of response and nonreporting. Factors affecting accuracy of reporting are the respondent's knowledge of the facts and the enumerator's ability to obtain accurate information and classify the unit with respect to such items as condition, seasonal status, number of rooms, rent, sale price, and the like. The 1950 data also are subject to such possible biases.

COMM-DC

1

During the third quarter 1956, the available vacancy rate for the United States was 2.8 percent of all dwelling units, according to the results of a sample survey conducted by the Bureau of the Census, Department of Commerce. The "for rent" portion amounted to 2.2 percent and the "for sale" portion, 0.6 percent. Compared with the results for the third quarter 1955, there is evidence of an increase in the available supply of vacancies over the past year. The increase was largely in the "for rent" group and was greater in the territory outside metrothan inside politan centers these areas. For other types of vacant units--those already rented or sold, held off the market, dilapidated, or seasonal--the levels for the United States as a whole did not differ substantially from those for the same quarter a year ago.

By geographic region, the Northeast continued to have the lowest available vacancy rate-1.8 percent. The West remained the highest with 3.9 percent, and the South was next with 3.5 percent. Inside standard metropolitan areas, there were relatively fewer available vacancies than outside these areas; the rates were 2.5 and 3.2 percent, respectively.

The third quarter 1956 statistics are averages for the and three months, July, August, September. In the comparison with previous quarters, there appear to be relatively large differences and fluctuations for some of the

1 An available vacant dwelling unit is a unit which is intended for year-round occupancy, is not dilapidated, and is offered for rent or sale.

subclasses of vacant units.

Series H-111, No. 6

UNIVERSITY OF MICHIGAN

DEC

6 1956

MAIN READING ROOM

Because the results

Vacant units available for sale were generally larger than vacant units available for rent, were more likely to be single-family houses, and tended to remain vacant for a longer period of time.

Of the available vacancies for sale, approximately half (54 percent) had 3 or more bedrooms; almost all (93 percent) were singlefamily houses; and about two-fifths (42 percent) had been vacant for at least four months. Of the vacancies available for rent, only a few (9 percent) had 3 or more bedrooms; one-third were single-family houses; and one-third had been vacant for four months or longer.

There was little change since the second quarter in the rent and price asked for nonfarm vacancies. The median monthly rent asked for available nonfarm rental vacancies was $46. Rentals for approximately three-tenths of the vacancies included amounts for all utilities-heat, water, light, and cooking fuel.

The median price asked for nonfarm vacancies available for sale was $11,200. Vacancies for sale include houses that have been previously occupied as well as new housing, the latter group constituting by far the smaller proportion of the "for sale" group.

does not general

Data on rent and price asked were obtained only for nonfarm units. Such data were not obtained for farm units because of the difficulty of separating the amount for the dwelling unit from the amount for the farm land. The trend in rent or price asked for vacant units necessarily reflect the change in the rent or price level. The rent or price asked is for available vacant units and may not represent the rent level of renter-occupied units or the current value of owner-occupied homes. Further, the rent or price is the amount asked at the time of enumeration and may differ from the rent contracted for or the selling price.

Compared with a year ago, there are few differences insofar as characteristics of total available vacancies are concerned. For nonfarm vacancies, the asking price of those for sale is higher, but the rent asked of those for rent is about the same.

Total year-round vacancies

Vacant units available for rent or sale constituted over two-fifths of the total yearround vacancies. The remainder comprised vacant units that had already been rented or sold, units held off the market by the owner, and dilapidated units.

The "held off market" group includes units reserved for the owner's use as a second home, units temporarily not on the market for personal reasons of the owner, and units not offered for rent or sale because they are located in places where there is little demand for them. The owner's intended use of the unit may change from time to time, so that a vacancy may shift into and out of the "held off market" category. Further, there is evidence of some shift from yearround to seasonal use, depending on the intent of the owner. Thus, because of the instability of the "held off market" category, changes from quarter to quarter may not be significant. In the West particularly, and in rural areas, there appears to be an indication of instability in this group.

Year-round vacancies which were dilapidated constituted 1.0 percent of the total housing. These vacancies were found largely in rural areas. Of the four regions, the South had the largest proportion. Because of their structural condition, dilapidated vacancies are not considered part of the available housing supply. Vacancies in the dilapidated group are among the units most likely to drop out of the housing inventory. Vacant units which are intended for Occupancy as living quarters are included in the inventory even though they are dilapidated; however, vacant units which are unfit for human habitation or deteriorated to the extent that they are no longer considered living quarters are not included in the statistics for this report.

The three groups of year-round vacancies (rented or sold, held off market, and dilapidated), added to the available vacancies, bring the total year-round vacancy rate to 6.2 percent.

Seasonal units

About 2.8 percent of the total dwelling units were seasonal units which were either

vacant or occupied temporarily by persons who had a usual residence elsewhere. Vacation homes for summer or winter recreational use comprise approximately nine-tenths of the total seasonal units. The remaining one-tenth consists of cabins and houses reserved for loggers, herders, or migratory farm laborers who would occupy the quarters during the work season.

Rental and home-owner vacancy rates

For a fuller understanding of the housing market, two new measures of vacancies are offered. They were presented for the first time in the report for the first quarter 1956. These measures are termed the "rental vacancy rate" and the "home owner vacancy rate."

The rental vacancy rate expresses the relationship between vacant housing that is offered for rent and the total rental supply, which is the sum of the renter-occupied units, vacant units already rented and awaiting occupancy at the time of enumeration, and vacant units available for rent. Thus, as shown in the table below, the rental vacancy rate is the relationship of the 2.2 percent of all dwelling

units which are vacant and available for rent to the total rental units. Similarly, the home-owner vacancy rate expresses the relationship between vacant housing available for sale, 0.6 percent, and the total home-owner supply. The home-owner supply is the sum of the owner-occupied units, vacant units already sold and awaiting оссиpancy, and vacant units available for sale.

Table B.--OCCUPANCY AND VACANCY RATES: THIRD QUARTER 1956

Comparison of the 1956 with the 1950 rental vacancy rate illustrates the change in the utilization of the housing supply in the six years. The rental vacancy rate for the United States in 1950 was 2.6 percent. Although the percentage of rental units has decreased since 1950, the number has remained practically unchanged. The construction of new rental developments has been offset by the shift of many single-family homes from renter However, the number of vacant units available for rent has increased, thereby increasing the rental vacancy rate. The 1956 rental vacancy rate was approximately twice the 1950 rate in all regions except the North Central, where it was about three and one-half times as large.

to owner occupancy.