According to the report, 1,164 apartments were absorbed in the third quarter of 2002, as compared with a mere 221 in the same period last year. Meanwhile, the 2002 year-to-date absorption total of 1,036 units has already risen above last year's entire total absorption of 851 units.

The rising level of demand has been met with increased construction, as the 2002 year-to-date new construction of 1,887 units has already surpassed the 1,386 units that were completed for all of 2001. More than 1,200 units are set to enter lease-up in fourth quarter 2002, including 216 in the South Bay submarket, 300 in the I-15 Corridor submarket and 473 in the Golden Triangle submarket.

Although the overall average vacancy rate for third quarter 2002 has risen to 3.6% from 3.0% a year earlier, it was the lowest vacancy level to be experienced here in four consecutive quarters. And as the Hendricks & Partners' report points out, the overall average vacancy rate has remained "well under equilibrium," seeing as 3,096 units have entered the market over the 12-month period ending September 2002.