PHILADELPHIA, 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 Philadelphia apartment market will benefit from firming occupancies and strong 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. Philadelphia drops eights spots this year to No. 19.

"The Philadelphia economy has bounced back over the past two years and will post stronger employment growth in 2006, lending support to apartment market fundamentals," comments Jeffrey R. Algatt, regional manager of 's Philadelphia office. "Investors are maintaining a positive outlook on the market. Philadelphia's stable economy, attractive renter demographics and relatively inexpensive investment properties will continue to attract investors looking for less pricey alternatives to the Northeast markets such as Manhattan and Washington, D.C."

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

• Both asking and effective rents will continue to rise at a rate in line with recent history.
  
  Asking rents are projected to rise 3 percent to $955 per month by year end, while effective rents will increase 4.1 percent to $921 per month.
  

• Vacancy will decrease to 4.1 percent, an improvement of 30 basis points from 2005.
  
  The significant upswing in payrolls, coupled with fewer completions, will allow the vacancy rate to post its first year-over-year decrease since 2000.
  

• Over 31,000 new jobs will be added in 2006, a 1.1 percent increase from last year.
  
  The sectors forecast to post the most growth are trade, transportation and utilities, which will add roughly 14,000 positions, and educational and health services with 13,000 new jobs.
  

• Construction of apartments will fall slightly, as 1,300 units are scheduled to be completed in 2006.
  
  The construction pipeline remains deep, with over 7,000 units in various planning stages.
  

• The median sales price per unit rose 9 percent to $57,000 during 2005. 
  
  Center City's waterfront area will continue to be a hot spot for investment. The forecast increase in property revenue, combined with rising demand and limited new supply, will keep investors interested in the area through 2006.
  

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.