The index is a snapshot analysis that ranks 43 apartment markets based on their cumulative weighted-average scores for a series of 12-month forward-looking supply-and-demand indicators, including forecast employment change, vacancy, construction, housing affordability and rents. Taking into account both the predicted level and degree of change over the forecast period, the index is designed to indicate relative supply and demand conditions at the market level.

The report says Dallas/Fort Worth job growth in will be modest in '09. Following a five-year stretch where the Metroplex added approximately 340,000 new positions, it is expected to add just 3,600 positions this year, a bare 0.1% increase. At the same time, the report points out, apartment development, though down from last year, will add 6,700 new units, increasing the inventory by 1.4%. Last year, builders added 10,800 apartments.

As a result, Marcus & Millichap expects the local vacancy rate to rise 180 basis points to 9.2% by year end due to the combination of weaker renter demand and increased supply. It reports supply-side pressure pushed vacancy up 130 basis points in '08. In turn, it says, asking rents are projected to finish the year at $798 per month, a 1.4% gain, while effective rents are projected to increase 0.3% to $723 per month.