COS Market Analysis & Trends 3

Question 1

In market trend analysis, 'absorption rate' refers to:

Accepted Answer

The pace at which available rental units are leased over a given period

Answer

Absorption rate measures how quickly vacant units are filled, indicating market strength and demand velocity.

Question 2

A COS specialist notices that market rents in the submarket have risen 8% while the subject property's rents increased only 3%. This gap most likely indicates:

Accepted Answer

The property may be under-rented relative to its market

Answer

When market rents rise faster than a property's rents, the property is likely leaving money on the table by being priced below market.

Question 3

Which of the following best describes a 'soft market' condition?

Accepted Answer

High vacancy rates and downward pressure on rents

Answer

A soft market has excess supply relative to demand, leading to higher vacancies and landlords competing on price.

Question 4

For an affordable housing development using LIHTC, the market study must demonstrate:

Accepted Answer

Sufficient demand for income-restricted units at the proposed rent levels

Answer

LIHTC market studies must show adequate demand from income-qualified households who can afford the restricted rents.

Question 5

Population growth in a primary market area (PMA) is a leading indicator of:

Accepted Answer

Future housing demand

Answer

Population growth increases the pool of potential renters, signaling rising future demand for housing units.

(COS) Certified Occupancy Specialist Practice Test

(COS) Certified Occupancy Specialist Practice Test

COS Market Analysis & Trends 3