Absorption Rate
Explore absorption rate in Canadian real estate — what it measures, how it's calculated, and why it matters to market analysis.

July 11, 2025
What is Absorption Rate?
Absorption rate is a metric that measures the rate at which available properties are sold or leased in a specific market over a given period.
Why Absorption Rate Matters in Real Estate
In Canadian real estate, absorption rate indicates market health, demand, and pricing trends, and is used by developers, investors, and agents.
Calculation:
- (Number of properties sold ÷ total available properties) × 100
- Expressed as a monthly or annual rate
High absorption rates suggest strong demand and a seller’s market, while low rates may indicate oversupply.
Example of Absorption Rate in Action
The city’s absorption rate for new condos rose sharply, reflecting strong demand and declining inventory.
Key Takeaways
- Measures how quickly properties sell
- Indicates market demand and health
- Guides pricing and development decisions
- High rates reflect strong demand
- Low rates signal oversupply
Related Terms
- Market Trends
- Housing Inventory
- Sales-To-New-Listings Ratio (SNLR)
- Sellers' Market
- Buyers' Market

7211 Greenford Avenue in Burnaby. (Arcadis, OpenForm Properties)
The phasing and overview of the proposal for 7211 Greenford Avenue. (Arcadis, OpenForm Properties)
Renderings of the proposal for 7211 Greenford Avenue in Burnaby. (Arcadis, OpenForm Properties)
Renderings of the low-rise building planned for 7211 Greenford Avenue in Burnaby. (Arcadis, OpenForm Properties)







Yardi
Yardi
Canada residential unit sales by month, actual, 2019 and 2024-2026. Data through June 2026. Source:
Canada residential sales-to-new-listings ratio, actual, January 2025 to June 2026. Source:
Canada residential months of inventory, actual, January 2025 to June 2026. Source: Source:
Year-over-year change in residential average sale price for Canada, Ontario, British Columbia and Alberta, January 2022 to June 2026. Average price is shown here as a regional mix measure, not a substitute for HPI or local comparable sales. Source:
Year-over-year change in residential unit sales for Canada, Ontario, British Columbia and Alberta, January 2024 to June 2026. Source: 
15284-15296 Fleetwood Drive in Surrey. (Flat Architecture, 1098261 BC Ltd.)
Renderings of the tower proposed for 15284-15296 Fleetwood Drive in Surrey. (Flat Architecture, 1098261 BC Ltd.)





Goldberg Group 
10-storey apartment building currently occupying 525 Eglinton Avenue East/WND Associates
Rendering of 525 Eglinton Avenue East/Wallman Architects
The Mayfair West site and its surrounding context. (Grosvenor, Arcadis, Hariri Pontarini Architects)
Renderings of Mayfair West. (Grosvenor, Arcadis, Hariri Pontarini Architects)