Definition:
Exposure rate is the percentage of a community's total units that are either currently vacant or expected to become available within a defined forward-looking window - typically 30 to 60 days, due to pending move-outs, non-renewals, notices to vacate, or lease expirations. It is calculated by adding currently vacant units to units with pending move-outs, then dividing that sum by the total unit count. Exposure rate differs from simple vacancy rate in that it incorporates near-term anticipated availability, not just current empty units.
Why it matters:
Exposure rate is one of the most operationally predictive metrics available to multifamily teams. While vacancy rate is a lagging indicator, it reflects what has already happened - exposure rate functions as an early warning system, surfacing occupancy risk before it materializes. A property with 4% current vacancy but 14% exposure rate has a significant problem developing, and responding to that signal before units become vacant preserves far more revenue than reacting after the fact. Leasing teams use exposure rate to calibrate urgency in marketing and outreach, pricing teams use it to guide concession strategy, and operators use it to determine when budget automation tools should activate additional spend.
