The hit to apartment absorption from the coronavirus has occurred at the same time as a large number of new units are set to enter the market. Even with current tenants staying put, that raises the risk of a spike in the vacancy rate. However, construction delays will push back the completion date of some of those units. And the record low number of homes for sale, combined with pent-up demand from the spring, will boost absorption later this year and prevent the vacancy rate from rising beyond 5.5%.
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