What term describes a situation where there are more units available than tenants?

The term that describes a situation where there are more units available than tenants is "technical over supply." This situation occurs when the number of rental units exceeds the demand from potential renters, leading to an oversupply in the housing market. As a result, property managers may face challenges, such as lower rental prices or increased vacancy rates, as they compete to attract tenants.

Understanding this concept is essential in property management, as it directly affects pricing strategies, marketing efforts, and overall property performance. Recognizing when there is an oversupply allows property managers to adjust their approaches, perhaps by enhancing property appeal or re-evaluating rental terms to attract tenants in a competitive landscape.

Market equilibrium, for example, refers to a state in which the quantity of units available matches the number of tenants wanting to rent, while market surplus pertains to the general phenomenon of excess supply exceeding demand, but not necessarily with the specificity on units versus tenants that is captured by technical over supply.