Mind you these are two totally different markets, but as we both know in a military town there are no shortages of renters.

There isn't a shortage of multi-family in the twin cities - it just takes some time finding the right one.

Result - a labor shortage in the trades.

Our property is in a good part of town near a university, so we will have no shortage of tenants. 

That's a fast track to going out of business.I know you think that there's a shortage of competition, but what happens if Dunkins plunks a new location down across the street from you? 

Historical is the absorption rate that has taken place.Forecast is a prediction based on the historical absorption and current/anticipated economic trends.Absorption rate for a year would be calculated  - number of total sales in a year divided by twelve = monthly absorption rate in prior year (average for the year).Current months of housing supply is calculated - number of active listings divided by the monthly absorption rate - total number of months the current supply should lastSo, 120 sales in the prior year gives you a monthly absorption rate of 10 (120/12).30 active listings would give you a three month supply (30/10).A three month supply in most markets would be considered the borderline of balanced and shortage.

I'm considering a new student housing development at a nearby university with a chronic shortage of student housing.

There is no shortage of information on this site to learn from.

However, other park operators have done well by rehabbing older homes (assuming the needed repairs are less than $15,000)...in the end, shelter is shelter—especially with the shortage of affordable housing that is available. 

@Chris Munichiello The crystal ball isn't exactly my thing, but given the *severe* shortage of homes on the market, I expect prices to continue to climb in the short to medium term.As of Q4 2018, Suffolk County (Boston) was down to a 1.3 month supply.