The pace at which available rental units or properties are leased or sold in a market.
Absorption rate measures how quickly properties or rental units are being leased or sold over a given period. A high absorption rate signals strong demand — properties don't sit on the market long. A low absorption rate suggests excess supply or weak demand. Investors use absorption rates to gauge market timing and rental demand.
Absorption Rate = Units Leased ÷ Total Available Units (over a time period)Absorption rate equals units leased or sold divided by total available units, typically measured monthly.
In a market with 200 vacant rental units, 50 units were leased last month. Monthly absorption rate = 50 ÷ 200 = 25%. At this pace, the available inventory would be absorbed in 4 months, indicating strong demand.
Richify automatically calculates absorption rate and other key real estate metrics for every property in your portfolio. Instead of plugging numbers into spreadsheets, you get instant analysis with built-in AI-powered insights to help you spot trends and opportunities across your holdings.
The percentage of time a rental property sits empty without a tenant generating income.
The number of days a property is listed for sale or rent before being sold or leased.
Recent sales of similar properties used to estimate a target property's market value.
The increase in a property's market value over time.
Stop calculating real estate metrics by hand. Richify computes absorption rate and 10+ other key metrics for every property in your portfolio.
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