True or False: If the actual vacancy rate is higher than the natural vacancy rate, the market is said to be under-built.

The statement that if the actual vacancy rate is higher than the natural vacancy rate, the market is said to be under-built is inaccurate. The natural vacancy rate represents the level of vacancies that is typical and sustainable in a healthy market, accounting for turnover and other normal fluctuations. If the actual vacancy rate exceeds the natural vacancy rate, it typically indicates an oversupply situation rather than an under-building scenario.

In a situation where actual vacancies are high compared to what is considered natural, it suggests that there may be too many properties available relative to demand, leading to increased vacancies. This often points to issues such as excessive new construction, a decline in demand, or economic factors affecting occupancy.

Understanding these concepts is crucial in real estate analysis, as it informs investors and developers about market health and guides decisions related to construction, investment, and property management. Therefore, the correct answer reflects the principle that higher actual vacancy rates than natural rates indicate an oversupply in the market rather than under-building.