According to the report: just over 1,000 apartment units will be constructed in the Downtown area over the next 12 months. There is practically no land available for new projects, so most new construction in this submarket consists of redevelopments or rehabilitations of existing buildings. Demand is expected to remain steady, keeping the vacancy rate relatively unchanged in 2002.

Lower-than-average rents and the submarket's close proximity to the CBD have created enough demand to push the average vacancy rate to a low 2.9%. Rates that are well below the county average should allow this submarket's rents to grow by an additional 4% this year to $953 per month. Rents have increased by more than 6% in the last year, despite the slowing economy. The average sales price per unit will stay the same this year, despite rents rising and vacancies remaining static. Lower-quality buildings and working-class neighborhoods tend to hinder investor enthusiasm for this market during a weak economy.

Despite most buildings maintaining near full occupancy, investors see less potential compared to neighboring markets. The current average price per unit of $49,000 is unchanged from 2000 and is the lowest in the county.