Rents remain below year-ago levels, but vacancy has fallen from its February peak and weakness is easing in several hard-hit metros.

Net absorption reached its second-highest quarterly level in two years, while investment volume posted its strongest first half since 2022.

Advertised rents declined 1.6% in July despite improving REIT results, while a shrinking construction pipeline offers hope for a more durable recovery.

A new NAHB report points to growing divergence between major apartment markets and smaller locations.