A so-called 'modest deceleration' is underway for the multifamily sector, with net absorption coming in at about 21,000 units nationally in the third quarter.

According to Moody's Analytics, net absorption is still "notably low" relative to the 84,040 units for the first half of the year, an average of 42,020 units per quarter. New construction deliveries came in at less than 12,000 units, and the national vacancy rate decreased 10 basis points to finish Q3 at a five-year low of 4.4%. Asking rents also increased by 1.6%. 

At the metro level, multifamily vacancy increased in 19% (or 15 out of 79) primary US markets analyzed by Moodys, ten more than last quarter. On a trailing 12-month basis, the list of metros with increasing vacancy tripled, led by Buffalo.