CINCINNATI, Jan. 27, 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 Cincinnati apartment market will post strong employment growth, which will support renter demand.

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. Cincinnati moves up one spot this year to No. 40.

"Limited construction and the strongest job growth in six years had a positive effect on Cincinnati apartment market fundamentals in 2005," comments Scott Przybyla, regional manager of 's Cincinnati office. "Further improvement is expected this year as continued employment gains in industries that typically support the renter pool boost demand."

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

• Declining vacancy in 2006 will lead to a 1.1 percent increase in asking rents in 2006 to $664 per month.
  
  Owners will start to trim concessions, resulting in a 1.9 percent gain in effective rents to $629 per month.
   

• Vacancy will decline 20 basis points to 8.8 percent in 2006.
  
  Strong absorption and declining vacancy will be supported by employment growth in key sectors and slow development activity.
   

• Cincinnati employment will expand by 16,000 jobs, or 1.5 percent, in 2006.
  
  Employment gains will be driven by the professional and business services sector, which is typically beneficial to the rental market.
   

• Apartment builders are expected to deliver 600 units in 2006, a mild increase from last year.
  
  Multi-family development is becoming more condo focused, with 700 units slated for completion this year and even more in the development pipeline.
   

• Buyers will remain active in the Northern Kentucky and Blue Ash submarkets.
  
  Housing demand in these areas is strengthening and apartment revenues, on average, are expected to grow in excess of the market average in 2006.
  
  

Orange County (Calif.) claimed the top spot in the 2006 NAI, surpassing last year's leader, Riverside-San Bernardino (California's Inland Empire). The region's median home price of more than $700,000 makes Orange County one of the least affordable housing markets in the country, which will keep renter demand at high levels. Fort Lauderdale occupies the No. 2 position due to robust job growth and low vacancy. Las Vegas moved up one spot to No. 3, supported by strong condo conversion activity and declining vacancy. San Diego fell two places to No. 4, and New York City-Manhattan climbed four positions to complete the top five. Typically the bottom MSAs in the NAI are markets with above-average vacancy or weak labor markets.