ELMWOOD PARK, N.J., 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 increase in development activity throughout Northern New Jersey will hinder a stronger rebound in market fundamentals.

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. Northern New Jersey loses 12 spots this year to No. 27.

"Job growth in key sectors that usually employ apartment renters will keep demand rising in 2006, offsetting the increase in development activity," comments Michael J. Fasano, regional manager of 's Northern New Jersey office. "The combination of improving near-term fundamentals and favorable short-term demographics will encourage apartment investors throughout the year."

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

• Monthly asking rents are projected to climb 2.8 percent this year to $1,398.
  
  Effective rents are expected to add 3.7 percent to finish the year at $1,356 per month.
   

• The vacancy rate will decline 10 basis points to 4.2 percent this year.
  
  In Union County, vacancy is projected to fall 30 basis points to 3.7 percent, while vacancy in Bergen County will remain in the low-3 percent range.
   

• The Northern New Jersey economy is projected to add 35,000 new jobs this year, up from 20,000 jobs in 2005.
  
  Many of the positions being added are in population-driven service sectors, which will stimulate apartment demand.
   

• Developers are forecast to add 1,400 units to the Northern New Jersey market in 2006, compared with 700 units last year.
  
  The forecast amount represents only 0.7 percent of rental inventory and will not be large enough to offset an increase in apartment demand.
   

• Investors will continue to be attracted to Hudson County due to its abundant prime locations and its population of more than 160,000 renter households, the most in the market.
  
  Another area that investors might want to consider is Morris County, where solid tenant demand is expected to boost property operations by more than 5 percent during 2006.