Eastwood tells GlobeSt.com that many people who purchased housesduring the low interest rate will be unable to hold onto theirhomes and will be forced back into apartments. That dynamic,coupled with 1.8% forecasted job growth, leads him to believe thatoccupancy will tick up two to three points and concessions willstart to clear out in most submarkets.

However, Eastwood doesn't believe that the recovery will be sostrong that concessions will disappear completely. "Concessions arejust really deep, and I can't see any reason the market willrecover with enough vigor within one year to wipe them out," henotes. Apartment owners are now typically offering one month tothree months free rent.

The Metroplex's vacancy rate remained relatively flat this year,according to Marcus & Millichap's most recent Apartment MarketReport. During the first half of 2004, the vacancy rate increasedhalf a percent, but will end the year at the 11.6%--the same levelat year-end 2003.