WEST PALM BEACH, FL-Pent-up demand for rental housing and job growth are fueling a recovery, albeit modest, in Palm Beach County's apartment market. That's according to Marcus & Millichap’s Fourth Quarter 2010 ApartmentResearch Market Update.

M&M reports a significant resurgence in demand for class A rentals through the first three quarters of 2010. Demand for class B and class C rentals was virtually flat in the period, however renewed hiring in trade sectors is a good start toward getting the lower-tier renter pool active again.

Investment activity still trails the strengthening in vacancy and rents, but low prices will stimulate greater activity in the months ahead. Marcus & Millichap also predicts possible changes in the tax treatment of capital gains could generate more deals by year end, and low interest rates and greater availability of acquisition financing also will encourage investors to act. Transaction velocity rose 40 percent in the past 12 months, based on a small number of transactions.