INDIANAPOLIS, 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 Indianapolis apartment market will post strong employment gains, while limited new construction will constrain 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. Indianapolis improves nine places this year to No. 33.

"The Indianapolis economy is strengthening as more companies expand in the area due to low business and living costs," comments Greg A. Moyer, managing director of and regional manager of the Indianapolis office. "Developers have been discouraged by rising construction costs and a scarcity of attractive sites, leading to minimal new development. This is a boon to apartment owners as fundamentals continue to strengthen and property operations are approaching levels not seen since early 2001."

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

• The high vacancy rate will limit owners' ability to raise asking rents, which are forecast to rise 1.6 percent in 2006 to $641 per month.
  
  Effective rents, will gain 2.5 percent to $603 per month, as owners will begin to lower concessions.
   

• Vacancy will fall 60 basis points this year to 9.3 percent, as employment gains underpin greater apartment demand.
  
  The growing popularity of living downtown will make the Central submarket the tightest in 2006 at 5.1 percent.
   

• A 3.1 percent increase in local payrolls is forecast in 2006, up from a 0.3 percent gain last year.
  
  The two largest contributors will be the educational and health services, and professional and business services sectors, which will each add more than 4,000 positions.
   

• Developers will deliver 560 apartment units in 2006, after 690 units were delivered last year.
  
  The majority of new construction activity will occur in Southern Indianapolis due to the ample amount of available land.
   

• Sales activity has been moderate in Indianapolis over the last couple of years but is expected to pick up in 2006 amid better market conditions.
  
  The median price was up 3.2 percent last year to $34,000 per unit and should register modest growth as vacancy begins to ease.
  
  

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.