A total of 808 apartment units had been absorbed in the first quarter, according to a new study by Hendricks & Partners, a Phoenix-based multifamily consulting firm. "The Tucson apartment market demonstrated a strong level of demand in the first quarter, helping to spur moderate rent growth," says John Hendricks, owner, president and CEO of Hendricks & Partners.

New construction has totaled just 229 units in two communities in comparison to 356 in first quarter 2000. The new units have gone up in east and south Tucson.

The overall vacancy rate has remained steady through the first quarter, coming down to 6.8% from 6.9% a year ago. Slight improvements have been shown in the south, central, east and northwest submarkets, while the northeast has slipped somewhat. The hardest hit submarket is west Tucson, where vacancy is 10.8%. Still, it's a bit better than December, when it had been riding at 12.1%. The cause, says the report, is new home construction.