Overall delivery volume yet to wane amid slowdown in downtown development. Madison’s high concentration of renter households, largely fueled by the growth of the University of Wisconsin, has driven solid demand for market-rate apartments throughout this cycle, translating to an average annual absorption of 1,200 units. This consistent leasing velocity has lowered vacancy across all asset classes below 3 percent entering the second quarter of this year, generating pent-up demand for available rentals and warranting a consistent volume of development. While deliveries in 2019 nearly match the previous five-year average, a shift in the location of completions will occur. Downtown Madison will experience a slowdown in new supply, welcoming just 150 rentals, with East Madison’s apartment stock rising by more than 700 units. The influx of arrivals in the latter submarket appears warranted, as the area led the metro in absorption over the past 12 months. Overall, luxury units delivered this year should be well received, as expansions by Google and Zendesk, along with biotech firms Exact Sciences Corp. and Catalent, increase the number of higher-earning residents.