# New Survey Shows Increase in Absorption Rate of New Apartment Units

The Census Bureau recently released the Survey of Market Absorption of New Multifamily Units (SOMA) for the second quarter of 2024. The survey revealed a positive trend in the absorption rate of new apartment units within three months of completion. On the other hand, the absorption rate for condominiums and cooperative units saw a decline over the same period.

According to the survey, the absorption rate for new apartment units increased from 50% to 55% in the latest quarter. This uptick comes as a result of a surge in completions, reaching a new high of 118,600 units in the second quarter of 2024. The pace of multifamily units being completed has increased, with completions exceeding 75,000 for nine consecutive quarters.

Despite the rise in the absorption rate for apartments, the rate has fallen from its peak of 75% in the third quarter of 2021. The absorption rates for different time periods, including six-months, nine-months, and 12-months, have all followed a downward trend as the number of completions of new units has increased over the past two years.

In contrast, the absorption rate for new condominiums and cooperative units fell to 66% in the second quarter of 2024. This decline can be attributed to a revision in the previous quarter’s rate, which was adjusted from 69% to 80%. Total completions of new condominiums and cooperative units saw an increase over the quarter, rising from 2,829 to 4,366 units.

## FAQ

### What is the Survey of Market Absorption of New Multifamily Units (SOMA)?
The SOMA is a survey conducted by the Census Bureau to track the absorption rates of new multifamily units, including apartments, condominiums, and cooperative units.

### What is the absorption rate?
The absorption rate represents the percentage of new units that are occupied within a specified time period after completion.

### How have completion rates of new apartment units changed over the past year?
Completions of new apartment units have increased steadily over the past year, reaching a new high in the second quarter of 2024.

## Conclusion

The latest SOMA survey provides valuable insights into the absorption rate of new apartment units and condominiums in the housing market. While the absorption rate for apartments has shown improvement, the rate for condominiums and cooperative units has declined. The increase in completion rates of new units indicates a positive trend in the multifamily housing sector. Continued monitoring of absorption rates will be essential to assess the ongoing dynamics of the housing market.