What is absorption rate in real estate?
Absorption rate is the share of homes for sale that sell in a month: homes sold divided by active listings. A higher rate means homes are taken up faster. It is roughly the flip side of months of supply. Real Estate Intel's market score uses a close cousin, homes under contract divided by homes for sale.
Updated November 2026. A plain-language definition, not legal advice.
How it works
If 200 homes sell in a month and 1,000 are listed, the absorption rate is 20%. That matches five months of supply.
A common rule of thumb reads a rate above about 20% as leaning to sellers and below about 15% as leaning to buyers.
Using homes under contract instead of closed sales shows the same idea a month or two sooner, because contracts come before closings.
Absorption rate in the markets we track
The share of homes for sale that sold in the month, all home types, from Redfin.
| County | Cities | Absorption rate |
|---|---|---|
| Clark County, Nevada | Las Vegas, Henderson | 19.6% a monthSep 2026 |
| Washoe County, Nevada | Reno | 30.7% a monthSep 2026 |
| Washington County, Utah | St. George | 8.0% a monthSep 2026 |
| Salt Lake County, Utah | Salt Lake City | 22.3% a monthSep 2026 |
| Dallas County, Texas | Dallas | 19.2% a monthSep 2026 |
| Collin County, Texas | Plano, Frisco | 19.5% a monthSep 2026 |
| Tarrant County, Texas | Fort Worth | 24.4% a monthSep 2026 |
| Harris County, Texas | Houston | 17.9% a monthSep 2026 |
| Travis County, Texas | Austin | 15.3% a monthSep 2026 |
| Bexar County, Texas | San Antonio | 16.7% a monthSep 2026 |
Source: Redfin, a national real estate brokerage. County-level figures.
What to watch
Watch the direction over several months, not one reading.
Compare it with the same month last year to take out the seasons.
Questions people ask
What is absorption rate in real estate?
Absorption rate is the share of homes for sale that sell in a month: homes sold divided by active listings. A higher rate means homes are taken up faster. It is roughly the flip side of months of supply. Real Estate Intel's market score uses a close cousin, homes under contract divided by homes for sale.
How do you calculate absorption rate?
Divide the number of homes sold in a month by the number of active listings. 200 sales and 1,000 listings is a 20% absorption rate.
Related terms
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