20 Market & Competitor Analysis Practice Questions & Answers

Every Market & Competitor Analysis practice question from the CAM Practice Test, with the correct answer and a short explanation.

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1. A submarket reports 96 percent occupancy, yet net absorption over the past 12 months was only 40 units while 300 newly built units were delivered. What does the absorption figure tell the manager that the occupancy figure does not?
- A.It shows the proportion of area households able to afford the rents charged
- B.It shows how many months a resident stays before giving notice to vacate
- C.It shows the pace at which the market takes up units over a period of time✓ Answer
- D.It shows the share of existing inventory leased at a single point in time
Occupancy is a snapshot — the share of units leased at one moment. Absorption is a flow: the net units leased over a period. With 300 units delivered and only 40 units of net absorption in a year, demand is running far behind new supply, so today's high occupancy can mask a submarket that cannot lease its pipeline.
Source: NAAEI Certified Apartment Manager (CAM) Exam Blueprint — housing supply, demand and absorption in the region and neighborhoodReport a problem with this question
2. In a regional market study, which pair of indicators BEST measures future rental housing SUPPLY rather than demand?
- A.Building permits issued and units scheduled for delivery next year✓ Answer
- B.Weekly traffic at the community and the leasing team's closing ratio
- C.Median household income and the age distribution of the region's population
- D.Job growth in the metro and the number of new households forming each year
Permits and scheduled deliveries count units that will physically enter the market, which is supply. Jobs, household formation and income measure the number of renters and their ability to pay, which is demand; traffic and closing ratio are internal performance measures, not market data at all.
Source: NAAEI Certified Apartment Manager (CAM) Exam Blueprint — regional economic climate and housing supply and demandReport a problem with this question
3. A manager is choosing comparable properties for a competitive survey. Directly across the street sits a 40-year-old income-restricted mid-rise; the subject is a five-year-old market-rate garden community. What is the BEST reason to leave that property out of the survey?
- A.It draws a different renter because its age, restrictions and building type differ✓ Answer
- B.It is so close that its residents would never consider moving to the subject
- C.A comparable must sit in the same school attendance zone as the subject property
- D.Income-restricted communities may not be surveyed by market-rate communities
A comparable is a property that competes for the same renter — similar age, condition, building type, unit mix and pricing structure. Proximity alone does not make a property comparable, so an older income-restricted mid-rise would distort the survey's rents and vacancy even though it is the nearest building.
Source: NAAEI Certified Apartment Manager (CAM) Exam Blueprint — evaluating the property against comparable competing communitiesReport a problem with this question
4. A competing community advertises a one-bedroom at $1,500 per month on a 12-month lease with six weeks of free rent; treat one month as four weeks. Using net effective rent = (market rent x lease months - total concessions) / lease months, what is the competitor's net effective monthly rent?
- A.$1,437.50
- B.$1,500.00
- C.$1,312.50✓ Answer
- D.$1,375.00
Six weeks equals 1.5 months, so the concession is 1.5 x $1,500 = $2,250. Net effective rent is ($1,500 x 12 - $2,250) / 12 = $15,750 / 12 = $1,312.50. Treating the concession as one month gives $1,375.00 and as half a month gives $1,437.50; ignoring it leaves the quoted $1,500.00.
Source: NAAEI Certified Apartment Manager (CAM) Exam Blueprint — net effective rent and adjusting competitor pricing for concessionsReport a problem with this question
5. A market survey records the rents that competing communities quote when they are shopped by phone. Why can those quoted rents overstate what the submarket is actually collecting?
- A.Quoted rents are set by the region's largest employers, not by each property
- B.Quoted rents describe renewal pricing, which runs higher than new-lease pricing
- C.Quoted rents always include utilities, so they exceed the base rent charged
- D.Quoted rents leave out concessions, waived fees and unit-level discounts✓ Answer
A shopped or quoted rent is the asking price before anything is given back. Net effective rent subtracts free rent, waived application or amenity fees and discretionary discounts, so a survey built on quoted rents alone shows the submarket priced higher than competitors are truly collecting.
Source: NAAEI Certified Apartment Manager (CAM) Exam Blueprint — competitive market survey and rent schedulesReport a problem with this question
6. A manager is about to reset asking rents using a submarket report whose data was collected 14 months ago, and three new communities have opened in the submarket since then. What should the manager do FIRST?
- A.Use the report as published, because third-party data outranks on-site observation
- B.Shop current rents and add the newly opened communities to the survey✓ Answer
- C.Add a flat percentage to the report's rents to account for the time elapsed
- D.Set rents from the property's own traffic counts and drop outside data
Market data ages. A report gathered before three communities opened cannot reflect the supply now competing for the same renter, so its conclusions are stale rather than wrong in method. Refreshing the shopped rents and adding the new competitors restores the survey; a blanket percentage adjustment simply invents data.
Source: NAAEI Certified Apartment Manager (CAM) Exam Blueprint — identifying and using third-party sources of market dataReport a problem with this question
7. Which activity BEST describes analyzing the metropolitan area a property sits in, as opposed to analyzing its neighborhood?
- A.Reviewing the rent schedules and vacancy of the closest competing properties
- B.Reviewing the regional employers and population growth that shape demand✓ Answer
- C.Reviewing the unit mix, amenities and floor plans the property itself offers
- D.Reviewing the streets, schools, shopping and parks within a few miles
Regional analysis looks at the economic engine of the metropolitan area — who the major employers are, which industries dominate, and how population and households are growing — because those forces create housing demand across the whole metro. Neighborhood analysis works at roughly a few-mile radius: access, services and nearby housing choices.
Source: NAAEI Certified Apartment Manager (CAM) Exam Blueprint — locating the property within an expanded region and within its neighborhoodReport a problem with this question
8. A competitive survey shows the subject's occupancy six points below four comparables with similar rents and amenities, and the subject's weekly traffic is the lowest of the five. What should the manager address FIRST?
- A.Rents, by pricing below every comparable until occupancy matches theirs
- B.Screening criteria, by approving applicants the current standards decline
- C.Unit mix, by combining smaller floor plans into larger ones over time
- D.Visibility and outreach, because fewer prospects are reaching the community✓ Answer
When rents and amenities already match the competitive set, an occupancy gap paired with the lowest traffic is a demand-generation problem at the top of the funnel, not a pricing problem. Cutting rent in a market the property is already priced with gives away revenue without fixing awareness, and loosening screening buys occupancy with bad debt and turnover.
Source: NAAEI Certified Apartment Manager (CAM) Exam Blueprint — deducing competitive advantages and recommending ways to improve market shareReport a problem with this question
9. Which term is BEST defined as a detailed side-by-side comparison of the subject property with two to four competing communities on rents, vacancy, policies and amenities?
- A.The competitive market survey✓ Answer
- B.The regional market analysis
- C.The neighborhood analysis report
- D.The property's annual marketing plan
The competitive market survey is the property-level instrument that lines the subject up against a small set of true competitors on rent schedules, vacancy, concessions, policies, amenities and resident profile. Neighborhood analysis describes the area around the property, regional market analysis describes metro-wide economics, and the marketing plan states objectives and methods.
Source: NAAEI Certified Apartment Manager (CAM) Exam Blueprint — distinguishing market analysis, neighborhood analysis, competitive survey and marketing planReport a problem with this question
10. The metropolitan area's largest employer announces it will move 2,000 jobs out of the region within a year. In planning, what effect should the manager MOST expect at the property?
- A.Higher renewals, because workers being relocated seldom move out
- B.No measurable effect, because jobs move home sales and not rents
- C.Immediate growth in household formation as workers seek smaller units
- D.Softer demand and slower absorption, with more pressure on occupancy✓ Answer
Employment is the primary demand driver in a regional analysis because jobs support household formation and the ability to pay rent. Losing a major employer reduces in-migration and household growth, so absorption slows and existing supply competes harder for a smaller renter pool.
Source: NAAEI Certified Apartment Manager (CAM) Exam Blueprint — impact of the regional economic climate on the propertyReport a problem with this question
11. A submarket delivered 480 newly built units during the past 12 months, and 300 of those units were leased by the end of that period. What was the average monthly absorption of the new units?
- A.40 units per month
- B.15 units per month
- C.60 units per month
- D.25 units per month✓ Answer
Absorption counts units actually leased over a period, so 300 leased units divided by 12 months equals 25 units per month. Dividing the 480 delivered units by 12 gives 40, which is the pace of construction, not the pace at which the market is taking the units.
Source: NAAEI Certified Apartment Manager (CAM) Exam Blueprint — measuring absorption in the region and neighborhoodReport a problem with this question
12. A competing community quotes $1,200 per month with water, sewer and trash included. The subject quotes $1,150 and bills those services back at $60 per unit per month. Comparing what a resident actually pays each month, which statement is correct?
- A.The subject costs the resident about $10 more per month than the competitor✓ Answer
- B.The subject costs the resident about $60 more per month than the competitor
- C.The subject costs the resident about $50 less per month than the competitor
- D.The subject costs the resident about $110 less per month than the competitor
A survey must compare like with like, which means adjusting quoted rents for what each rent includes. The resident's monthly outlay is $1,150 + $60 = $1,210 at the subject against $1,200 at the competitor, so the subject is about $10 higher even though its quoted rent looks $50 cheaper.
Source: NAAEI Certified Apartment Manager (CAM) Exam Blueprint — comparing market indicators across competing propertiesReport a problem with this question
13. Why does a market analysis rely on outside statistics such as census, employment and building-permit data instead of the property's own reports alone?
- A.Outside data is required by federal law before asking rents may be changed
- B.Property records are unreliable because on-site staff enter them by hand
- C.Property records show its own results but not the market's size or direction✓ Answer
- D.Outside data replaces the competitive survey, which is no longer needed
Internal reports are performance data about one property; they cannot say how large the renter pool is, how much new supply is coming, or where the regional economy is heading. Third-party statistics supply that context, and the competitive survey then narrows it to the property's own competitive set.
Source: NAAEI Certified Apartment Manager (CAM) Exam Blueprint — identifying and using third-party sources of statistics and dataReport a problem with this question
14. The submarket contains 4,000 apartment units, of which 3,600 are leased. The subject property has 250 units and 200 of them are leased. What share of the submarket's leased units does the subject hold?
- A.About 5.0 percent
- B.About 6.9 percent
- C.About 5.6 percent✓ Answer
- D.About 6.3 percent
Share of leased units compares leased to leased: 200 divided by 3,600 equals about 5.6 percent. Dividing 200 by the 4,000 total inventory gives 5.0 percent, and using the property's 250 total units instead of its 200 leased units gives 6.3 or 6.9 percent, each answering a different question.
Source: NAAEI Certified Apartment Manager (CAM) Exam Blueprint — market share and market penetration in the submarketReport a problem with this question
15. Three new communities totaling 900 units will deliver in the submarket over the next six months. The submarket has absorbed roughly 60 units per month for two years. What should the manager plan for?
- A.A quick rise in submarket rents as the new communities price higher
- B.Lease-up concessions across the submarket and a longer absorption period✓ Answer
- C.No pricing change, because new construction serves a different renter
- D.Lower turnover at the subject, since residents cannot find other units
Nine hundred units in six months is about 150 units a month arriving against demonstrated demand of about 60 a month. When supply outruns absorption, the new communities discount to fill up and the whole submarket, including the subject, faces longer lease-up and downward pressure on effective rent.
Source: NAAEI Certified Apartment Manager (CAM) Exam Blueprint — housing supply, absorption and their effect on the propertyReport a problem with this question
16. The subject has held 95 percent occupancy while submarket vacancy has risen for three consecutive quarters. What does that comparison BEST tell the manager?
- A.The submarket data must be wrong, since the subject did not weaken
- B.The property is outperforming its submarket, an edge that may not hold✓ Answer
- C.The property's rents sit far below the market and should be raised now
- D.Competitor surveys can pause until submarket vacancy stabilizes again
Comparing the property against its submarket separates property performance from market conditions. Holding occupancy while the market loosens means the subject is currently taking share, but rising vacancy tells the manager competitors will begin discounting, so this is a reason to survey more often rather than proof that rents are underpriced.
Source: NAAEI Certified Apartment Manager (CAM) Exam Blueprint — relating market indicators back to the subject propertyReport a problem with this question
17. A metropolitan area's total population is flat, but the number of households is rising because average household size is falling. What does this MOST likely mean for rental demand?
- A.Demand is unchanged, since household size affects only home purchases
- B.Demand can grow without population growth, since households rent units✓ Answer
- C.Demand shifts entirely to larger floor plans as families move in together
- D.Demand will fall, because rental demand tracks total population alone
A household, not an individual, occupies a rental unit. When average household size falls — through later marriage, divorce, roommates splitting up or people living alone longer — the same population forms more households and needs more units, which is why household formation is a stronger demand indicator than headcount.
Source: NAAEI Certified Apartment Manager (CAM) Exam Blueprint — population, demographics and household formation as demand driversReport a problem with this question
18. The competitive survey shows all four comparables offer in-unit laundry and covered parking, the subject offers neither, and all five quote similar rents. Which recommendation BEST addresses the subject's competitive position?
- A.Hold rents at the comparables' level and advertise as an amenity-rich choice
- B.Leave amenities out of the survey so staff can present rents by themselves
- C.Price below the comparables while pricing out the cost of adding the amenities✓ Answer
- D.Raise rents to signal quality, since prospects equate price with value
A property that offers less than its competitive set at the same price has a weaker value proposition and will lose share. Pricing to the difference restores value to the prospect immediately, while a cost-benefit look at adding the missing amenities tests whether closing the gap permanently pays for itself. Advertising amenities the property lacks is also a misrepresentation.
Source: NAAEI Certified Apartment Manager (CAM) Exam Blueprint — deducing competitive advantages and challenges and recommending improvementsReport a problem with this question
19. A manager receives two submarket rent reports that reach different conclusions. Which factor MOST determines which report should carry more weight?
- A.Which report covers the widest geography, since bigger is more reliable
- B.Which report shows rents closer to what the owner expects to achieve
- C.Which report presents its findings with more charts and better design
- D.Which report uses more recent data and states its method clearly✓ Answer
A data source earns trust from currency, a transparent method and a defined sample — when and how the numbers were gathered. Presentation quality and geographic breadth say nothing about accuracy, and picking the report that matches the owner's expectations is confirmation bias rather than analysis.
Source: NAAEI Certified Apartment Manager (CAM) Exam Blueprint — evaluating third-party sources of statistics and dataReport a problem with this question
20. The subject is the only community in its submarket with a fenced dog park and direct access to a regional trail, but its unit interiors are dated compared with the comparables. How should the market analysis treat these two facts?
- A.As a competitive advantage in amenities and a challenge in unit condition✓ Answer
- B.As neither, since analysis reports only rents, vacancy and concessions
- C.As a challenge only, since interior finishes drive the leasing decision
- D.As an advantage only, since interior condition is an operations matter
A market analysis is supposed to end in deduction: list where the property beats its competitive set and where it trails, then recommend action. A unique amenity and location feature no competitor can match is a real advantage to market against, while dated interiors are a real challenge that limits achievable rent, and both belong in the same analysis.
Source: NAAEI Certified Apartment Manager (CAM) Exam Blueprint — deducing the property's competitive advantages and challenges relative to competing housingReport a problem with this question

Practice questions based on the NAAEI CAM V2 Exam Blueprint and standard apartment-management practice. CAM and NAAEI are marks of the National Apartment Association; this site is not affiliated with or endorsed by NAA or NAAEI. The credential itself requires CAM coursework plus 12 months of onsite property management experience, which may be earned while you take the course. Fair housing questions here cover the federal protected classes; landlord-tenant rules, and the protected classes added on top of the federal set, are state and local law and are not covered — check the law where your community sits. Confirm current requirements with NAAEI before testing. About the CAM credential →

1. A submarket reports 96 percent occupancy, yet net absorption over the past 12 months was only 40 units while 300 newly built units were delivered. What does the absorption figure tell the manager that the occupancy figure does not?

2. In a regional market study, which pair of indicators BEST measures future rental housing SUPPLY rather than demand?

3. A manager is choosing comparable properties for a competitive survey. Directly across the street sits a 40-year-old income-restricted mid-rise; the subject is a five-year-old market-rate garden community. What is the BEST reason to leave that property out of the survey?

4. A competing community advertises a one-bedroom at $1,500 per month on a 12-month lease with six weeks of free rent; treat one month as four weeks. Using net effective rent = (market rent x lease months - total concessions) / lease months, what is the competitor's net effective monthly rent?

5. A market survey records the rents that competing communities quote when they are shopped by phone. Why can those quoted rents overstate what the submarket is actually collecting?

6. A manager is about to reset asking rents using a submarket report whose data was collected 14 months ago, and three new communities have opened in the submarket since then. What should the manager do FIRST?

7. Which activity BEST describes analyzing the metropolitan area a property sits in, as opposed to analyzing its neighborhood?

8. A competitive survey shows the subject's occupancy six points below four comparables with similar rents and amenities, and the subject's weekly traffic is the lowest of the five. What should the manager address FIRST?

9. Which term is BEST defined as a detailed side-by-side comparison of the subject property with two to four competing communities on rents, vacancy, policies and amenities?

10. The metropolitan area's largest employer announces it will move 2,000 jobs out of the region within a year. In planning, what effect should the manager MOST expect at the property?

11. A submarket delivered 480 newly built units during the past 12 months, and 300 of those units were leased by the end of that period. What was the average monthly absorption of the new units?

12. A competing community quotes $1,200 per month with water, sewer and trash included. The subject quotes $1,150 and bills those services back at $60 per unit per month. Comparing what a resident actually pays each month, which statement is correct?

13. Why does a market analysis rely on outside statistics such as census, employment and building-permit data instead of the property's own reports alone?

14. The submarket contains 4,000 apartment units, of which 3,600 are leased. The subject property has 250 units and 200 of them are leased. What share of the submarket's leased units does the subject hold?

15. Three new communities totaling 900 units will deliver in the submarket over the next six months. The submarket has absorbed roughly 60 units per month for two years. What should the manager plan for?

16. The subject has held 95 percent occupancy while submarket vacancy has risen for three consecutive quarters. What does that comparison BEST tell the manager?

17. A metropolitan area's total population is flat, but the number of households is rising because average household size is falling. What does this MOST likely mean for rental demand?

18. The competitive survey shows all four comparables offer in-unit laundry and covered parking, the subject offers neither, and all five quote similar rents. Which recommendation BEST addresses the subject's competitive position?

19. A manager receives two submarket rent reports that reach different conclusions. Which factor MOST determines which report should carry more weight?

20. The subject is the only community in its submarket with a fenced dog park and direct access to a regional trail, but its unit interiors are dated compared with the comparables. How should the market analysis treat these two facts?