NEW YORK CITY—Notwithstanding strong metrics for the second quarter—including an historically low vacancy rate, appreciable year-over-year rent growth and the best Q2 showing for absorption in three years—the apartment sector’s recovery is maturing, Reis Inc. said Wednesday in its quarterly report. “Vacancy compression stalled during the second quarter of 2014 and it continues to slow gradually over time,” says senior economist Ryan Severino. “This is a trend that we have observed over the last few years and a harbinger for the apartment market going forward.”

After hitting bottom in 2011, new multifamily construction increased in 2012 and 2013, and thus far this year it’s ahead of the pace seen a prior.  “As construction continues to ramp up and demand moderates, this will put upward pressure on national vacancy,” Severino says.

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