ONTARIO, Calif., Feb. 6, 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 Riverside-San Bernardino apartment market will benefit from tight occupancies and high 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. Riverside-San Bernardino loses seven places this year to No. 8.

"Market conditions in the Inland Empire will remain strong due to solid population gains and job growth," notes Kevin Assef, a managing director of and regional manager of the firm's Ontario office. "Apartment demand continues to be robust and is being supplemented by rising home prices. Affordability in the market has dropped below 25 percent for the first time, pricing many new residents out of the for-sale market. In addition, the investment market will remain highly competitive during 2006 as buyers continue to outnumber sellers."

Following are some of the most significant aspects of the Riverside-San Bernardino Apartment Research Report:

• High absorption rates, coupled with a growing population and low housing affordability, will allow owners to maintain aggressive rent increases in 2006.
  
  Average asking rents are expected to rise 5 percent to $1,036 per month this year, while declining concessions push up effective rents by 6 percent to $1,003 per month.
  

• Vacancy is forecast to improve 30 basis points this year to 4 percent.
  
  Strong renter demand and job growth will help absorb the high number of new units expected to be delivered in 2006.
  

• Local employers will add 42,000 positions in 2006 after increasing payrolls by 35,000 in 2005.
  
  The leisure and hospitality sector will lead the way with 6,000 new jobs, representing growth of more than 5 percent. The professional and business services sector also will continue to expand, adding 5,000 positions over the course of the year.
  

• Developers will scale back construction from last year, as 3,200 units are expected to be delivered in 2006.
  
  Construction remains concentrated in the North Riverside and Rancho Cucamonga submarkets again this year.
  

• Buyers are aggressively seeking apartment properties in the Inland Empire.
  
  Cap rates are expected to fall below 5 percent this year. Investors have been particularly active in areas where future development and redevelopment efforts are expected to increase property values, such as the rapidly expanding Coachella Valley and the High Desert.