The combination of economic growth, strong demographic trends, and the rising cost of home ownership compared with renting, is leading to greater demand for apartment residences. These factors are contributing to the forcast of a significant rise in rent for 2005.

Indicators (Market Tightness Index, Sales Volume Index, Equity Financing Index, and Debt Financing Index) have revealed an improving market for landlords - clearly pointing to recovery in the multifamily housing market, says the National Multi Housing Council. In addition, market research has shown that 25 of the top 29 metropolitan areas in the West, which were not good rental markets, were showing signs of rent increases.

In a bit of a catch-22, many renters are upset that the higher rent payments will reduce savings devoted to buying a home. What's worse is that home prices will continue to rise, and mortgage interest rates are also forecast to follow suit, and that could push the American Dream of home ownership even further out of many renter's grasp.

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