LOS ANGELES, 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 Los Angeles apartment market will benefit from historically low housing affordability and rising 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. Los Angeles falls four spots this year to No. 9.

"Los Angeles apartment owners are poised for another strong year in 2006, which will keep investor interest high," comments Lane M. Schwartz, regional manager of 's Los Angeles office. "Over the past year, transaction velocity and dollar volume for properties selling in excess of $10 million more than doubled. Prices will continue to appreciate in nearly all areas of the county this year."

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

• The expanding renter pool has been able to absorb the large number of new units delivered in recent years.
  
  Owners are expected to raise asking rents 5.2 percent in 2006 to $1,350 per month. Effective rents are forecast to increase 6.2 percent this year.
   

• After ending 2005 at 3.4 percent, vacancy is expected to improve to 3.2 percent in 2006.
  
  Absorption of luxury units in the downtown area will contribute to the decline.
   

• Local employers will add 57,000 workers to payrolls in 2006, a gain of 1.4 percent over 2005.
  
  Nearly one-quarter of these jobs will be in the higher-paying professional and business sector, which will result in increased demand for luxury apartments.
   

• Apartment builders will add 5,100 units in 2006, with the majority concentrated in the Westside Cities and the Greater Downtown area.
  
  Demand will continue to outstrip new supply, though, since multi-family development remains focused on the condo market.
   

• Investors will remain bullish on the Los Angeles apartment market.
  
  While private investors will remain the dominant players in the market in 2006, institutional activity has started to pick up, especially since annual average revenue growth is approaching 5 percent.
  
  

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.