Amid all the angst about the stability of the multifamily sector, there are signs that the market is beginning to work its way through its problems, even though parts of the country, especially in the overbuilt South, still show weakness.

A report by Apartments.com, a CoStar Group online marketplace, shows rising absorption, even though vacancy remains high due to oversupply. "The U.S. multifamily market staged a strong rebound in demand during the first quarter of 2024, as 104,000 units were absorbed, the highest number since the third quarter of 2021," the report declared.

Nevertheless, the vacancy rate ticked up to 7.8% in March 2024 from 7.7% in December 2023, as 140,000 new units were delivered. This was the 10th consecutive quarterly increase in the vacancy rate – but the smallest in that period.

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