Question

using the following data, please determine the markets number of months supply. if your project has 500 units (of the 800 under construction), what is your monthly anticipated capture rate? (4 points)
vacant units = 300
units under construction = 800
total estimated annual demand = 600
essay 4 points

Explanation:

Step1: Calculate total supply

The total supply is the sum of vacant units and units under - construction. So, total supply = 300 + 800=1100 units.

Step2: Calculate monthly supply

The annual demand is 600 units. First, assume the market clears over time. The total supply of 1100 units needs to be absorbed. Monthly supply = $\frac{1100}{12}\approx91.67$ units.

Step3: Calculate months of supply

If we consider the annual demand of 600 units, the monthly demand is $\frac{600}{12} = 50$ units. The number of months of supply = $\frac{1100}{50}=22$ months.

Answer:

22 months