OAKLAND, Calif., 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 Oakland apartment market will benefit from growing tenant demand, limited development activity and low housing affordability.

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. Oakland gains four places this year to No. 6.

"Improving job growth and falling housing affordability is providing additional support to the Oakland apartment market," comments Jerome Smith, regional manager of 's Oakland office. "Strong investor demand continues to exert upward pressure on prices. While the median price has jumped significantly in the past three years, the East Bay remains the affordable choice for investors interested in Bay Area properties."

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

• Asking rents are forecast to increase 2.5 percent to $1,236 per month this year.
  
  Firming occupancies will enable owners to reduce concessions and achieve effective rent growth of 5 percent.
  

• Vacancy is expected to drop 50 basis points to 6 percent in 2006, the most significant gain in six years.
  
  The popular Tri-Valley submarket will continue to attract residents, which will push vacancy down 100 basis points to 3 percent. 
  

• Oakland employers will continue to expand payrolls in 2006, adding almost 22,000 positions, an increase of 2.1 percent.
  
  Gains will be driven by increased hiring in the professional and business services sector, which will bolster demand for the metro's Class A apartment units.
  

• Apartment development will increase slightly in 2006, as approximately 1,100 units are scheduled to come online.
  
  Condo construction is surging, though, as single-family home prices continue to climb. Developers are scheduled to deliver nearly 2,500 for-sale condos in 2006.
  

• Buyer demand will remain strong, especially in the city of Oakland. 
  
  Occupancy in the city is at almost 95 percent and owners will continue to record consistent rent growth in the 3 percent range. With a median price that is 17 percent below the metrowide median, Oakland is historically one of the more active investment locations, accounting for nearly one-third of all transactions in the metro.
  
  

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.