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Now that we are through Q1 of 2026, how are things looking for KC multifamily absorption and deliveries? The relationship between absorption and deliveries is a key one, along with "new starts." Absorption refers to the number of units that became occupied or vacant relative to the previous measurement. It is the net change in occupied units. If Kansas City had 100,000 occupied apartments as measured at the end of 2024 and 105,000 occupied apartments at the end of 2025, absorption would be 5,000 net units over that time frame. You can have negative absorption when the total occupied units goes down; 100,000 units occupied to 95,000 units occupied. In general, it is a reference point for demand in a market and can tell one side of the "what can we expect for occupancy in this MSA, county, or suburban district?" story. The other side of that story is told by deliveries. Deliveries refers to the number of completed new construction units that are ready to begin being leased and occupied over a given time frame. If there are 110,000 rentable apartments in a city at the end of 2024, and there are 117,000 rentable units at the end of 2025, this would mean that 7,000 new units have been added to that available supply over that 12-month time frame. Deliveries equal 7,000, or 6.4% of existing inventory (Deliveries % = Delivered Units / Initial Inventory). Absorption and deliveries are the supply and demand markers (along with many other variables that serve as leading and lagging indicators, but are still part of the same story) for multifamily in an MSA. If 5,000 units are delivered across a 12-month period and 5,000 units are absorbed, then occupancy rates will remain relatively stable for that time frame, all things being equal. If 10,000 units are delivered and only 5,000 are absorbed, then occupancy will trend down on average for that area because there was more new product added than there was immediate demand for. Usually when this happens, especially multiple quarters in a row, average rents will begin to stagnate or even decrease to facilitate more demand. Cheaper apartments means more people can afford them, which means more people will move into them instead of getting a mortgage or living in another city, which means occupancy rates will climb.