NEW YORK -- Jan. 13, 2006 -- Apartment rents in the 69 largest U.S. markets rose 0.7 percent during the last three months of 2005, as vacancies dipped slightly to 5.7 percent, according to the most recent report from Reis Inc.

The New York-based real estate research firm says absorption declined in the fourth quarter from the previous three months, but the numbers were skewed as a result of Hurricane Katrina.

Conversions of rental apartments to condominiums once again decreases the apartment supply in the fourth quarter, which boosted the market overall.

Cities with the highest growth in rent during the fourth quarter included San Francisco (1.9 percent growth) and Orlando, Fla. (1.6 percent). Fort Lauderdale, Fla., and New York City had the lowest vacancy rates at 2.6 percent and 2.9 percent, respectively.