WEST PALM BEACH, FL-Projected job growth and pent-up demand forrental housing are sparking a modest recovery in the Palm BeachCounty apartment market. So says Marcus & Millichap’s FourthQuarter 2010 ApartmentResearch Market Update.

The firm reports a significant resurgence in demand for class Arentals through the first three quarters. Demand for class B andclass C rentals was virtually flat in the period, however renewedhiring in trade sectors is a good start toward getting thelower-tier renter pool active again.

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