Because of the increased interest, Davis says, market prices for apartment properties are responding in a fairly predictable manner. "There are more buyers and not as much available product on the market," he says.

The average price for class A apartment properties in Palm Beach County through the first quarter this year was at a regional market high of $105,676 per unit. That compares with an estimate of $82,821 per unit in Broward County. There are no comparables for Miami-Dade, since that market did not record any sales of class A properties during the survey period.

All this activity has Davis and his associates asking whether the region, especially in Palm Beach County, can sustain the growth, considering current overall US market conditions. The market should retain these growth characteristics, Davis says, so long as the current market slowdown doesn't extend into 2002. All indicators point toward increased population and job growth, especially in Palm Beach County.

"We think, with the caveat being the economy and that we come out of this softness in the third or fourth quarter this year, we'll be okay in Palm Beach County," Davis says. "If there's any weakness, that is the one market that could be affected because there is much more new product than being built in Broward or Miami-Dade."

Even if the market softens, Davis adds, Palm Beach may benefit from a reluctance of possible first-time homebuyers delaying a market purchase and continuing to rent space.

"The slowdown in the economy is double-edged," he says. "Tenants who may be thinking of moving out may not because they fear they might lose their jobs."