In some markets, multifamily housing may start to stabilize later this year after vacancies peak, but recovery prospects remain murky for the states hit hardest by the residential real estate downturn, Fitch Inc. said Thursday.

The rating agency said it expects multifamily vacancies to peak at 8.9% sometime this year and delinquencies to climb to nearly 13% "in the near future," as recovery prospects will be muted in states such as Nevada, Tennessee, Florida and Texas, which were hit especially hard during the downturn.

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