Developers are currently on pace to deliver 373,000 in 2018, likely marking a cyclical peak. This influx of inventory is hindering multifamily fundamentals from any substantial gains during the first half of the year despite continued strong demand for rentals. Vacancy rates have remained stable at 5.2 percent, an increase of seven basis points from one year ago, while annualized rent growth experienced a slight uptick to 2.4 percent, up from 2.3 percent in Q1. Of the 38 JLL tracked multifamily markets, Austin was the sole market with negative annualized rent growth, at -0.4 percent. With deliveries expected to slow in 2019, the potential for an improvement in fundamentals is quickly approaching.