CHICAGO, Jan. 25, 2006 -  Real Estate Investment Brokerage Company, the nation's largest real estate investment brokerage firm, recently released its National Apartment Research Report for 2006, which indicates the Chicago apartment market will benefit from a strengthening labor market coupled with limited new supply.

Also included in the report is the firm's annual National Apartment Index (NAI), a snapshot analysis that ranks 42 apartment markets based on a series of 12-month forward-looking supply and demand indicators. Chicago moves up three positions this year to No. 20.

"Vacancy in the Chicago apartment market reached its lowest point last year since 2002, and is expected to continue improving in 2006 on the strength of robust job growth," comments Greg A. Moyer, managing director of and regional manager of the Chicago office. "Continued gains in tourism are also expected to help the apartment market, as hiring in the leisure and hospitality sector leads to expansion of the renter pool."

Following are some of the most significant aspects of the Chicago Apartment Research Report:

• Improving occupancy will enable owners to boost asking rents by 2.2 percent in 2006 to $992 per month.
  
  The greatest contributor to gross revenue growth will come from concession burn, with effective rents forecast to increase by 4.4 percent this year to $942 per month.
   

• Vacancy is expected to improve 70 basis points in 2006 to 5.8 percent as solid job growth raises demand.
  
  Vacancy will decline in many submarkets, including a 90 basis point reduction in the Loop to 8 percent.
   

• Employers are expected to add more than 67,000 positions in 2006, an increase of 1.5 percent.
  
  Gains will be driven by increased hiring in the educational and health services, leisure and hospitality, and trade, transportation and utilities sectors.
   

• Developers are forecast to deliver 1,750 units in 2006, down more than 10 percent from last year.
  
  Many developers are shifting focus from rental units to for-sale condos, resulting in a shrinking apartment construction pipeline.
   

• Many transactions involving properties with a lower price per unit are taking place in the Southside of Chicago.
  
  Properties in this area can prove to be solid opportunities and can often be purchased for less than $50,000 per unit.