In its Q3 report about the region's multifamily market, SanFrancisco-based RealFacts shows an inventory of 183,002 units inproperties from 100 units to 1,222 units. Occupancy stood at 90%,which fell from 91.2% in Q3 2007. And three months ago, occupancywas 88.8%. Earlier in thequarter, local experts were optimistic that the corner hadbeen turned.

Statistics from M/PF YieldStar in Carrollton, TX, show the281,700-unit inventory, which includes properties with less than100 units, are 89.6% filled, down 3.4% from the same period lastyear. Occupancy was pegged at 90% at the end of the lastquarter.

But, it isn't falling occupancy that is worrying M/PF YieldStarvice president of research and analysis Greg Willett so much as itis what's coming on line. "The volume of new supply ahead is prettyscary," he says. "Projects totaling 11,418 units are underconstruction. The area will grow its inventory by 4% in the comingyear to two years."