It is looking possible that multifamily's fundamentals in the second quarter will finish stronger than a year ago. It is even possible that the quarter overall may outperform expectations. This is according to CoStar Group, which is basing this premise on April's rental numbers that are showing every sign that the sector is beginning to stabilize. 

"National year-over-year asking rent growth slowed to 2.1% at the end of April from 2.6% at the end of March, vacancy rates held steady and 34,000 units were absorbed, signaling a strong start to the second quarter," says Jay Lybik, National Director of Multifamily Analytics at CoStar Group.

It is welcome news for the category, which CoStar had put on alert about a month ago that the following 90 days were critical for apartments. The firm's hope was that absorption can match deliveries by the end of the second quarter to help stabilize this sector, Lybik said at the time. Yet, there's no guarantee since risks are prevalent, including a potential weakening in the labor market and tighter financial conditions, he noted.