vacancy rate

Vacancy rates have been declining at apartment buildings across the U.S., sending rents soaring. And because housing makes up a big part of core inflation, those higher rents could translate into a doubling of the inflation rate this year.

Empty apartments have soared to their highest level in 30 years, and if those units stay that way for long, their owners may be unable to pay their mortgages. The wave of defaults that could result poses the biggest risk to regional banks in 2010.