The U.S. multifamily market remains healthy, with high levels of demand and a moderate vacancy rate of 4.6 percent, according to CBRE Research, but continued new supply over the past few years has begun to affect vacancy and rents.

The sector saw 115,600 apartment units completed during first half 2017, including completions of 64,800 units during the second quarter 2017. Both figures are close to the prior year’s construction volume; the second quarter 2017 total is 3.4 percent below second quarter 2016, while the first-half figure is 4 percent above first-half 2016.

Net absorption in second quarter 2017 totaled 113,200 units, a 1.2 percent increase from a year earlier. Net absorption in the first six months of the year was 149,800 units, 3.8 percent higher than last year’s first-half total, and net absorption totaled 220,300 units in the past 12 months. Absorption is not keeping pace with development, however. Although the current pace of apartment absorption is