The recently released data, which was collected in December 2002, says that the average apartment occupancy rate slipped from 96.1% in September to 95.4% in December. The report also goes on to say that some analysts believe "a war with Iraq, and the concomitant call-up of troops currently stationed in bases in San Diego, could greatly lower the demand for apartments in a very short time."

RealFacts' research also notes that the average apartment rent in San Diego County rose by just four dollars or 0.4%, from $1136 in September 2002 to $1140 in December 2002. This figure marks the smallest increase that the market has experienced in the past three years.

These factors do not seem to have had too much of an affect on investment dollars in the region, however, as the RealFacts report says that "brokers in the San Diego market area say they are experiencing a high level of investor interest." RealFacts' researchers attribute this significant amount of demand to the area's "great track record," pointing out that "rents have increased by 36.7% in the MSA over the past four years."