How is absorption calculated?
Absorption is defined as the net change in occupied units. To calculate this for a submarket or the overall market, we first calculate the absorption for each individual community. Then we sum up the absorption for each community within a submarket to determine the submarkets overall absorption. Since we cannot get 100% participation from every community every single survey period, it would be incorrect to assume absorption is the difference in the reported occupied units from one time period to another, since the number of occupied units can change based solely on the number of communities that participate in the each survey.
