SACRAMENTO, Calif., Feb. 6, 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 Sacramento apartment market will benefit from strong population growth and increased employment opportunities.

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. Sacramento drops four places this year to No. 21.

"Demand for rental housing in Sacramento is increasing at a strong pace, elevating prospects for improving fundamentals," comments Robert B. Hicks, senior vice president of and regional manager of the Sacramento office. "Strong population growth and a solid economy have increased property operations across the region, resulting in heightened interest from apartment buyers. Although institutional investors tend to favor the suburbs, demand has picked up for properties within the city of Sacramento, and record-breaking prices are being recorded."

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

• Asking rents are forecast to post a modest 2.5 percent gain in 2006 to $949 per month this year.
  
  Rent growth is being driven by strong population and employment increases in Sacramento.
  

• Vacancy is forecast to post a 60 basis point drop in 2006 to 6.5 percent, representing the most significant improvement in six years.
  
  Vacancy in the West Sacramento sub market is beginning to recede again, and it is expected to be the tightest area in 2006 at 2 percent.
  

• Job growth will continue to gain momentum in 2006 as employers increase payrolls by almost 22,000 positions.
  
  Fears of near-term government contraction should abate, as the sector is forecast to add almost 3,000 jobs.
  

• Apartment development is forecast to subside in 2006, falling to its lowest level in seven years.
  
  Approximately 2,000 units are expected to come online, a 23 percent decrease from 2005. The construction pipeline is expanding, however, with nearly 3,500 units in various stages of the planning process.
  

• Investor demand will remain strong in 2006, placing upward pressure on prices for larger assets. 
  
  The comparative affordability of local properties will continue to lure out-of-area buyers to the region.
  
  

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.