HOUSTON, 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 Houston apartment market will benefit from strong improvement in vacancy and healthy rent growth.

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. Houston improves four places this year to No. 36.

"Houston became a primary location for Hurricane Katrina evacuees late last year and the boost to the apartment market will continue to resonate in the metro in early 2006," comments Michael E. Hoffman, vice president of and regional manager of the Houston office. "The effect on vacancy created by an influx of new residents is expected to persist in the near term, and strong employment growth will stimulate apartment demand this year."

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

• Asking rents will increase 2.4 percent to $640 per month during 2006.
  
  Declining rental incentives will boost effective rents 3.5 percent to $560 per month.
   

• Owners can expect the gain in property operations from Katrina evacuees to persist in early 2006.
  
  Vacancy will end 2006 at 12.3 percent, down 100 basis points from year-end 2005.
   

• Job growth will gain momentum this year with an expected increase of 2.5 percent or 58,000 positions.
  
  Continued strength in the energy sector will result in solid growth in service industries, which will expand the pool of potential renters.
   

• Multi-family construction will be hampered by labor and material shortages in 2006.
  
  Approximately 2,600 apartment units will be delivered this year, compared with 4,400 units in 2005.
   

• Short-term operational gains will enhance cash flows for most owners in Houston.
  
  Investors looking for long-term stability should seek opportunities in the Interloop or Montrose/River Oak submarkets.