estimate of the expected annual sales or new occupancy of a particular type of land use. For example, the demand for new homes in a market area is estimated to be 500 per year. Developer Abel's new subdivision, when completed, is expected to capture 10% of the market. Therefore Abel's subdivision has an expected absorption rate of 50 homes per year (10% of 500 = 50).
estimated rate at which real estate properties can be sold or leased in a particular area.
an estimate of the expected annual sales or new occupancy of a particular type of land use.
Example: A total of 1,000 new homes are available for sale on the market. Each month for the past three months 100 homes have been sold and an equal number of new homes built and added to the supply. The monthly absorption rate is 10% (100 sales/1,000 inventory). See capture rate for the share of the market that is taken by a particular producer.
