DETROIT, 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 Detroit apartment market will post modest employment and rent growth over the next 12 months.

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. Detroit falls seven places this year to No. 42.

"Detroit's apartment market is expected to post modest improvement this year as local employment registers growth and construction remains limited," comments Steven R. Chaben, first vice president of and regional manager of the Detroit office. "Job growth is projected to head to the western suburban submarkets this year, which will support multi-family demand in many areas, including Ann Arbor, Farmington Hills, Novi and Westland."

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

• Asking rents are forecast to increase 1.4 percent to $820 per month by year end, which will represent the greatest percent gain in four years.
  
  Effective rents will fare even better due to concession burn, increasing 2.3 percent to $763 per month.
   

• Vacancy will fall 20 basis points to 6.6 percent by year end.
  
  The southern submarkets of Downriver/South Wayne and Westland will register the largest decreases in vacancy, dipping 50 basis points and 40 basis points, respectively.
   

• Employment growth will total 16,000 new jobs, or 0.8 percent, in 2006.
  
  One-third of the increases will come from well-paid positions in the professional and business services sector, with large gains also expected in the trade, transportation and utilities sector.
   

• While many developers have switched their focus to condos, apartment completions will rise this year.
  
  Builders are expected to deliver 900 units in 2006, with the majority concentrated in the downtown area.
   

• Private local investors will continue to account for the bulk of activity in the Detroit market in 2006.
  
  Older Class B/C properties with less than 50 units have been popular with private buyers, which led to a 5 percent increase in the median price in this segment to $47,000 per unit last year..
  
  

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.