PORTLAND, Ore., 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 Portland apartment market will benefit from increased employment opportunities and strong in-migration.

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. Portland maintains its position at No. 26 this year.

"The Portland apartment market will continue to record improvement during 2006 yet will fall short of a robust recovery due to increased construction," comments John F. Rodiles, regional manager of 's Portland office. "Job creation remains moderate, but increased hiring in key employment sectors, such as professional and business services, will help reinforce renter demand. Strong in-migration of 25- to 34-year-olds, a prime demographic for rental housing, also bodes well for a sustained recovery."

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

• Asking rents are expected to rise 1.7 percent in 2006 to $710 per month, while effective rents gain 3.3 percent to $668 per month.
  
  Improvement in occupancy will allow owners to push up rents in most areas.
  
  

• Vacancy is forecast to decline 20 basis points to 7 percent by year-end 2006.
  
  Rising employment growth and a steady influx of young professionals into the metro area will support apartment demand, putting slight downward pressure on vacancy. 
  
  

• Employers in the Portland metro area are forecast to expand staffing levels 2.4 percent in 2006, or by 24,000 jobs.
  
  In 2005, job creation was slower than the previous year when the economic recovery began.
  
  

• Developers are showing renewed interest in Portland as apartment fundamentals improve.
  
  The completion of 1,100 units is forecast this year, up from 800 units in 2005.
  
  

• Price appreciation is expected to accelerate in Portland this year.
  
  The greatest upside potential may be found in the East Gresham and Northeast submarkets, which are in the early stages of recovery.
  
  

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.