At the end of the third quarter, the overall multifamily vacancy rate is standing at a mere 2.8%, down from 4.1% a year ago. Of the various submarkets, the southeast had the lowest vacancy rate of 1.7% in comparison to 4.7% a year ago. The average monthly rent has risen 12.2% to $668, compared with $595 a year ago. Depending on the age of the complex, projects had sold for as little as $29,415 per unit to $80,483 per unit. The market has added 355 units in the third quarter - compared to only 90 units in the same period a year earlier, according to Hendricks & Partners. Permits also have soared, with permit activity rising to 635 units in comparison to 90 in third quarter 1999.

Hendricks & Partners credited the strong market to powerful job creation. "Atmel Corp. announced plans to build a fourth computer chip manufacturing plant in Colorado Springs, adding up to 1,000 new jobs with salaries averaging $40,000 to $45,000 annually," according to the report. VoiceStream Wireless Corp. has announced plans for a new customer service and operations center that will employ more than 550 people. And Intel Corp. plans to open a new plant that will employ 1,000 people, and could add a second site that employs up to another 2,500.