CRM Market Analysis & Trends 2

Question 1

Which economic indicator is most directly used to forecast residential rental demand in a metropolitan area?

Accepted Answer

Employment growth rate

Answer

Employment growth drives population migration and household formation, directly increasing demand for residential rentals.

Question 2

A residential market where vacancy rates are below 5% is typically classified as:

Accepted Answer

A landlord's market

Answer

Low vacancy rates (below 5%) indicate tight supply relative to demand, giving landlords pricing power — a landlord's market.

Question 3

When performing a Comparative Market Analysis (CMA) for a residential property, which adjustment is made for a comparable sale that lacks a garage the subject property has?

Accepted Answer

Add the garage value to the comparable's sale price

Answer

In a CMA, adjustments are made to the comparable sale — adding value for features the comparable lacks that the subject has.

Question 4

Which trend best describes the 'flight to quality' phenomenon observed in multifamily residential markets?

Accepted Answer

Institutional investors selling C-class assets to acquire A-class properties

Answer

Flight to quality refers to investors shifting capital from lower-grade assets to premium, higher-quality properties during market uncertainty.

Question 5

A residential manager notices that concessions such as one month free rent are increasing in the market. This most likely signals:

Accepted Answer

Oversupply or softening demand in the rental market

Answer

Growing concessions indicate landlords competing for tenants, a sign of oversupply or weakening demand.

(CRM) Certified Residential Manager Practice Test

(CRM) Certified Residential Manager Practice Test

CRM Market Analysis & Trends 2