"Vacancy will decline moderately, while rental rates will register the largest gain in two years. The Southfield submarket will outperform in terms of both vacancy and rents," comments Steven R. Chaben, a first vice president and regional manager of the firm's Detroit office. The real estate firm's annual National Apartment Index analysis ranks 42 apartment markets based on a series of 12-month forward-looking supply and demand indicators.

The Pontiac/Waterford submarket is expected to post the largest decrease in vacancy in 2005, forecast to dip 60 basis points to 6.5%, by year end. The average asking rent is expected to increase 2% in 2005, to $814 per month.

As concessions ease, Chaben says the firm anticipates effective rent growth of 2.2%, pushing the average to $758 per month. Strong upside potential in several submarkets, such as Macomb County, Dearborn/Dearborn Heights and Pontiac/Waterford, still exists, as vacancies are forecast to decline while rents will grow by more than 2%, Chaben says.