TRENDING: Bank Of Canada Holds Interest Rate At 2.25% In July

Absorption Rate

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

Absorption Rate

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

Additional Terms

Public Realm Improvements

Public realm improvements are enhancements to public spaces such as sidewalks, parks, plazas, and streetscapes, often funded or contributed by. more

Mortgagee in Possession

A mortgagee in possession is a lender who takes control of a property after borrower default, but before foreclosure or power of sale. The lender. more

Lease Surrender Agreement

A lease surrender agreement is a negotiated contract between a landlord and tenant that ends a lease before its scheduled expiration. Terms may. more

Green Infrastructure

Green infrastructure refers to natural or engineered systems that manage stormwater, reduce heat, and improve sustainability in developments.. more

Escrow Holdback

An escrow holdback is a portion of funds withheld at closing and held in escrow until specific conditions are met, such as completion of repairs,. more

Underused Housing Tax

The Underused Housing Tax (UHT) is a federal annual 1% tax on the value of vacant or underused residential property owned by non-resident,. more

More For You

Insider: The GTA's Industrial Vacancy Just Hit A Wall

Insider: The GTA's Industrial Vacancy Just Hit A Wall

theblowup/Unsplash

By: Harjaap Singh Makkar, Colliers

For the better part of two years, the smartest move for a tenant with an industrial lease coming due in the GTA was to do nothing. Every quarter brought more space, softer rents, and a landlord more willing to deal than the one before. That calculus has broken.

Keep ReadingShow less

$92M Federal-Municipal Deal Bringing 183 Family Rentals To Burnaby

$92M Federal-Municipal Deal Bringing 183 Family Rentals To Burnaby

Located at 6203 Marine Drive, the project will bring 183 townhomes to Burnaby for families.

On September 2, the federal government, the City of Burnaby, and the Burnaby Housing Authority announced nearly $92 million in combined funding to build 183 secure rental homes.

The new builds are set to rise at 6203 Marine Drive in the South Slope neighbourhood, near the Rosemary Brown Recreation Centre, schools, and childcare.

Keep ReadingShow less

Bank Of Canada Holds Interest Rate At 2.25% In September

Bank Of Canada Holds Interest Rate At 2.25% In September

The Bank of Canada left its target for the overnight rate untouched at 2.25% on September 2, keeping the Bank Rate at 2.5% and the deposit rate at 2.20%.

Governing Council held, with the economy and inflation evolving broadly as forecast in July. The backdrop, though, has moved: long-term bond yields are up both globally and in Canada, financial conditions have tightened, and the Canadian dollar has ticked up slightly on US-dollar weakness.

Keep ReadingShow less
TRENDING: Bank Of Canada Holds Interest Rate At 2.25% In July

Moving Day: August 2026 Industry Hires And Promotions

Moving Day: August 2026 Industry Hires And Promotions

From left: Matthew Warzecha, Activia; Dazle Gumabao, Marcon; Josh Kirles, CMHC; Jerry Nguyen, JD, Concert Properties; David Gu, GWL Realty Advisors; Marie Gillespie, Cushman & Wakefield

We know you like to know what's up.

For your information, reference, and networking needs, here are the moves, hires, and promotions the real estate and development sector saw in August 2026:

Keep ReadingShow less

CLV Group Buys Ashcroft’s ReStays Hotel, Unsold Condos Under Receivership

CLV Group Buys Ashcroft’s ReStays Hotel, Unsold Condos Under Receivership

The reStays and reResidences at 101 Queen Street and 108-116 Sparks Street in Ottawa. (TD Cornerstone and Cushman & Wakefield)

The ReStays Ottawa boutique luxury hotel in downtown Ottawa and a block of unsold ReResidences condos have officially been sold as part of a court-ordered sale, according to filings in Ontario Superior Court.

The ReStays Ottawa and ReResidences are located at 101 Queen Street and 108-116 Sparks Street, and consists of 111 hotel suites, 91 condo units, and just over 21,000 square feet of retail space across a six- and 17-storey building, all above an underground parkade.

Keep ReadingShow less

No Motor, No Traffic, No Problem: Floating Cottage 'Ursula' For Sale In Port Dover

No Motor, No Traffic, No Problem: Floating Cottage 'Ursula' For Sale In Port Dover

Ursula/Facebook Marketplace

And if you've ever sat in gridlock on the way to a cottage and wondered why the whole system couldn't just be different, meet Ursula.

This 14.5' x 45' floating cottage is currently moored at Port Dover marina, and is listed on Facebook Marketplace for $39,000. In the listing, the seller describes Ursula as "a sturdy girl."

Keep ReadingShow less

When Low-End Rents Get Harder To Afford, Homelessness Climbs: Study

When Low-End Rents Get Harder To Afford, Homelessness Climbs: Study

Hamilton, Ontario. (Destination Ontario)

It may not be shocking to hear that cities with high rents and low vacancy rates are also seeing an increase in homelessness, but correlation is not causation. But now, a recent study is pointing to causation.

The research was conducted by the Canadian Alliance to End Homelessness (CAEH), who said it was the first study of its kind in Canada, and that their research “demonstrates a clear link between housing affordability, vacancy rates, and increasing homelessness.”

Keep ReadingShow less

BILD: Single-Family Homes Lead GTA New Home Sales In July

BILD: Single-Family Homes Lead GTA New Home Sales In July
Toronto at dusk with city light and urban skyline with skyscrapers

There are two wolves inside the GTA's new home market, and for now, it's single-family homes that are being fed.

According to the latest from BILD, single-family sales just posted their fourth consecutive month above the 10-year average. Condos, meanwhile, are still locked out of most of the benefit.

Keep ReadingShow less
Privacy PolicyAbout UsTerms of UseAdvertise with UsJobsContact UsRSS Feed
All rights reserved SiteMedia © 2026.