The relationship between supply and demand for a particular type of multifamily property at its current rental level is reflected by

The relationship between supply and demand for a particular type of multifamily property at its current rental level is reflected by

• A. Cap rate
• B. Vacancy rate
• C. Occupancy rate for that type of property
• D. Rent per unit

Answer: (C)

Occupancy rate for that property type at the current rental level shows how much of the available units are actually leased, which is the direct result of how many people want to rent at that price and how many units are available. A high occupancy means strong demand relative to supply for that type of multifamily at that rent, while a low occupancy indicates weaker demand or more supply than demand. This metric directly ties the number of units being used to the current rent, illustrating the supply-and-demand balance. Cap rate isn’t about how many units are rented at a given rent; it relates income to price. The vacancy rate measures unoccupied space in the market but doesn’t specify how many units of a particular type are leased at the current rent. Rent per unit is a price indicator, not a measure of actual occupancy.

Occupancy rate for that property type at the current rental level shows how much of the available units are actually leased, which is the direct result of how many people want to rent at that price and how many units are available. A high occupancy means strong demand relative to supply for that type of multifamily at that rent, while a low occupancy indicates weaker demand or more supply than demand. This metric directly ties the number of units being used to the current rent, illustrating the supply-and-demand balance.

Cap rate isn’t about how many units are rented at a given rent; it relates income to price. The vacancy rate measures unoccupied space in the market but doesn’t specify how many units of a particular type are leased at the current rent. Rent per unit is a price indicator, not a measure of actual occupancy.