A total of 808 apartment units had been absorbed in the firstquarter, according to a new study by Hendricks & Partners, aPhoenix-based multifamily consulting firm. "The Tucson apartmentmarket 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 communitiesin comparison to 356 in first quarter 2000. The new units have goneup in east and south Tucson.

The overall vacancy rate has remained steady through the firstquarter, coming down to 6.8% from 6.9% a year ago. Slightimprovements have been shown in the south, central, east andnorthwest submarkets, while the northeast has slipped somewhat. Thehardest hit submarket is west Tucson, where vacancy is 10.8%.Still, it's a bit better than December, when it had been riding at12.1%. The cause, says the report, is new home construction.