IRVINE, 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 homeownership is out of reach for most Orange County residents, and tight market conditions along with strong job growth will lead to substantial apartment rent increases. 

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. Orange County climbs two places this year to claim the No. 1 spot.

"All market indicators suggest that the Orange County apartment market will outperform the nation in 2006," comments John M. Przybyla, vice president of and regional manager of the Newport Beach office. "Apartment owners are benefiting from the combined effect of healthy job growth and record-setting home prices."

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

• Asking rents are expected to increase 5.6 percent to $1,445 per month in 2006.
  
  Concessions will continue to wane, and effective rents will increase 6.5 percent to $1,410 per month. The strength of this market will allow owners to sustain strong rent growth in 2006 and beyond.
  
  

• Vacancy will tighten in 2006, with a 30 basis point decrease to 3.2 percent expected.
  
  Many of the new high-paying jobs being created are in the Greater Airport area, which is boosting demand for luxury apartments in Irvine.
  
  

• Employers will add 39,000 workers to payrolls in 2006, a 2.6 percent increase.
  
  Nearly one-third of these positions will be added in the professional and business services sector, which will help boost demand for high-end units.
  
  

• Developers are forecast to add 2,600 units in 2006, up from 1,500 units last year.
  
  Many builders are focusing their efforts on condos, which may result in some planned apartment buildings being changed to for-sale units before completion.
  
  

• Central Orange County, a location with tight vacancy and high rent growth, will remain popular with private investors. 
  
  The area near Platinum Triangle in Anaheim is generating tremendous interest, as buyers seek to capitalize on the future redevelopment efforts and the resulting rise in property values.
  
  

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.