NMHC Research
Rental Housing 101: Understanding Apartment Absorption
Rental Housing 101: Understanding Apartment Absorption
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America’s multifamily rental housing providers strive to provide quality housing and customer experience to millions of residents across the country. We provide a wide range of housing options that serve households at multiple price points.
To elevate the valuable role housing providers play in providing rental homes for millions of Americans, housing providers can sign up for the Foundations for Rental Housing. These Foundations provide a threshold for professionally managed rental properties.
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Housing providers frequently reference absorption—the net change in the number of occupied rental homes—as a proxy for household demand. That makes sense—because stronger demand often means more people signing leases. But, that’s not the full picture. Leasing activity is also a function of new supply: When more apartments get built, rents tend to fall, which makes it easier for more people to access housing (thereby forming more households).
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