PHILADELPHIA-New-job growth this year after sliding in 2009 is helping improve multifamily vacancy and rent rates in the area. Looking ahead, things are supposed to get even better in market, according to a recent Marcus & Millichap report.

After an 80-basis-point increase last year in vacancy, the firm expects that number to fall 100 points by the end of the year, bringing it to 5.5%. Additionally, average rents are forecast to increase 1.7%, hitting $1,019, after slipping 2.1% in 2009.

This improvement is due to the Philly area's employment picture. About 13,000 new jobs are expected to come online this year, representing a 0.5% increase for the overall market. That number dipped 3.6% last year.

On a regional basis, the most favorable vacacancy rate belongs in the Somerton/Bustleton area, at 2.7%. Center City owns the highest rental rates, averaging $1,493. The report cites the Norristown/Plymouth market with the highest vacancy, at 11.4%, and the lowest average rents are found in Olney/Oak Lane, where they average $687.

One problem area remains in investment activity, which saw a 23% decline in the area over the past 12 months. However, that could be turning around if recent transactions brokered by Gebroe-Hammer are any indication of what is to come.