Vacancies are expected to be at the 7.5% mark by year end, an improvement over the 8% level in late 2001, the report states. Property prices could rise by 3.5% over the next 12 months. Last year's median price per unit hit $40,000.

"Prices have been off slightly through the first half of 2002 and velocity has been relatively sluggish, but the second half of the year is poised for increased activity as investors become more comfortable with the current economic climate and debt remains affordable," Steven M. Ekovich, M&M's first vice president/regional manager overseeing the Tampa and Orlando markets, says in the report.

"Competition for apartment investment property is beginning to heat up in the wake of the economic downturn experienced over the past 18 months," Ekovich says."As the nation's population continues to move south, the Tampa area will continue to attract a steady stream of residents, from seniors to college students and young professionals."