2011 Hampton Roads Real Estate Market Review - College of ...

ABSORPTION
Absorption is defined as the net change in occupied units. Therefore, positive absorption occurs when previously vacant
or newly built dwellings become occupied. Based on historical performance, the Virginia Beach-Norfolk-Newport News area
is expected to absorb between 600 and 900 units annually. The collapse of the housing markets nationwide and the weakening
economy caused a significant drop in demand for all types of housing in 2008. The area experienced a surge in demand
for rental units in 2009 and 2010. This was due in part to the difficulties in the for-sale housing market.
TABLE V
Absorption
Units Absorbed (Demand)
2000
1800
1600
1400
1200
1000
800
600
400
200
0
-200
-400
-600
-800
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
TABLE VI Submarket Absorption 2010
700
Absorption (Annual)
600
500
400
300
200
100
0
Chesapeake Hampton Newport News Norfolk Portsmouth Suffolk Virginia Beach Williamsburg York County
2011 Hampton Roads Real Estate Market Review
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