He says the revitalization of Downtown Detroit, with new casinos andstadiums, have added to the visitors and employment base and will increase interest in apartment living in Detroit. Construction starts have been sluggish, however.

"Condominium conversions Downtown and in the suburbs are becoming increasingly popular, with owners choosing to sell off units for quick profits rather than deal with property management headaches sometimes associated with rental units," Kupiec says.

The Rochester and North Oakland areas are experiencing the most apartment construction activity due mainly to the creation of new jobs along Automation Alley, Kupiec says, which has seen new businesses springing up to support the nearby automotive industry.