NEW YORK CITY—Notwithstanding strong metrics for the secondquarter—including an historically low vacancy rate, appreciableyear-over-year rent growth and the best Q2 showing for absorptionin three years—the apartment sector's recovery is maturing, ReisInc. said Wednesday in its quarterly report. “Vacancy compressionstalled during the second quarter of 2014 and it continues to slowgradually over time,” says senior economist RyanSeverino. “This is a trend that we have observed over thelast few years and a harbinger for the apartment market goingforward.”

After hitting bottom in 2011, new multifamilyconstruction increased in 2012 and 2013, and thus far this yearit's ahead of the pace seen a prior. “As constructioncontinues to ramp up and demand moderates, this will put upwardpressure on national vacancy,” Severino says.

That much is typical. What's “a bit unusual,” Severino observes,is that demand should remain relatively strong as new supplysurpasses it, thanks to the large numbers of young, singlepotential renters.