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DETROIT-The multifamily market vacancies in metropolitan Detroit should not go higher than 6.5% in 2003, and absorption should stay the same because of slow new construction, said Hendricks and Partners in a recent forecast report.

The Detroit market averaged 6% vacancy at the end of 2002, said the Phoenix-based company. This vacancy rate is higher than many years prior, the company said.The market also had 2,109 units absorbed in 2002, the report said, with about 1,218 units built during the year.

This year, the Detroit market should only see 280 new units this year. People will continue to rent because interest rates are expected to rise, the company said. “2004 should bring improved vacancy rates, hovering near or just beneath equilibrium,” the company said.

Average rent hovered around $789 per month, though landlords are still offering one month’s free rent as concessions for the soft economy.

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