KANSAS CITY, Mo., 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 Kansas City apartment market fundamentals will strengthen due to accelerating job 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. Kansas City ranks No. 35 this year as a new addition to the NAI.

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

• The average asking rent is forecast to rise 1 percent this year to $660 per month.
  
  Concessions are expected to decline as the year progresses, supporting a 2.4 percent increase in effective rents to an average of $620 per month.
   

• Vacancy is forecast to decline 20 basis points to 7.6 percent this year.
  
  Vacancy is lowest among Class A properties in desirable areas, such as the Plaza and Shawnee/Lenexa, as renters are taking advantage of the recent softness in rent to upgrade.
   

• A gain of 31,000 jobs, or a 3.1 percent increase, is forecast for Kansas City in 2006.
  
  Last year, employment growth totaled 13,000 new positions.
   

• Kansas City is expected to receive 750 new units this year, down from 811 units in 2005.
  
  Most developers are hesitant to start new projects until economic growth is on firm footing, which will lead to another year of declining completions.
   

• While investment activity in the Kansas City market is relatively low, improving market conditions are starting to attract out-of-state investors.
  
  A Houston-based investment firm purchased a 624-unit property for almost $90,000 per unit, citing potential economic gains as justification for paying nearly double the market median.
  
  

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.