The Migration Matrix

But the rate at which this company converted singles into multis has steadily declined from 25 percent in 2000 to 22 percent in 2002 — a cause for concern. Total acquisitions decreased during the past four years, and the rate at which single buyers are converting into multi-buyers also declined.

In the second year after acquisition, the rate at which single buyers converted also declined, in this case by 2 percentage points (a drop from 41 percent to 39 percent). So only 15 percent (39 percent minus 24 percent) of the buyers acquired in 2000 converted in 2002, the second year after their first purchase. This is down from the 16 percent (41 percent minus 25 percent) rate from 1999 acquisitions in 2001.