Absorption

Absorption is the change in occupied multifamily units over a set period, often used to show how quickly available units are being leased. In new multifamily supply, a unit is considered absorbed once it has been initially rented or sold and is no longer available. Positive absorption indicates occupied units are increasing; negative absorption indicates occupied units are declining.

A 250-unit community starts the month with 210 occupied units and ends with 224 occupied units. Its monthly absorption is 14 units, meaning the property added 14 occupied apartments during that period.

Absorption helps operations leaders understand whether leasing activity is keeping pace with available units and new supply. It informs pricing, staffing, marketing readiness, and turn priorities because teams need accurate availability dates and unit status to move homes from vacant to occupied.