NEW HAVEN, Conn., Jan. 30, 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 New Haven apartment market will benefit from increased employment opportunities and 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. New Haven drops nine positions this year to No. 39.

"Due to the dearth of new development in the New Haven apartment market, existing properties typically generate strong investor interest," comments Mitchell R. LaBar, managing director of and regional manager of the New Haven office. "One trend that should continue in 2006 is the shift in investor focus from selling assets soon after purchase to raising property income by increasing occupancy and pushing rents higher."

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

• Asking rents will rise 2.5 percent to an average of $1,498 per month in 2006.
  
  Effective rents will rise at a similar rate to an average of $1,437 per month.
   

• Vacancy is projected to fall 20 basis points to 4.3 percent in 2006.
  
  Last year, vacancy declined through the third quarter; however, the majority of new supply was delivered in the fourth quarter, causing an uptick in vacancy for the year.
   

• Total employment is expected to advance 0.5 percent in 2006, a gain of 4,000 positions this year.
  
  The financial activities, professional and business services, and educational and health services sectors are expected to post modest gains this year.
   

• Development activity in New Haven will rise slightly this year to 985 new apartment units.
  
  The largest share of new units scheduled for delivery will be in East Fairfield County.
   

• Redevelopment efforts in the downtown areas are luring more residents and improving property operations.
  
  This is creating interest for properties that can be renovated to luxury status, especially since revenue growth for Class A apartments is forecast to exceed 6 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.