The apartment vacancy rate in the city of Davis dropped to 0.2 percent this fall, and rents rose by an average of 6.93 percent, according to a survey by the University of California, Davis.

The apartment vacancy rate declined from 0.3 percent last year and is the least favorable vacancy rate for tenants during the last 10 years. The rental-rate increase -- calculated by considering the percentage change for each type of rental unit and the proportion of each type of rental unit among all rental stock -- is less than last year's 8.3 percent rise.

The average monthly rent for unfurnished two-bedroom apartments, which account for about 46 percent of the apartment units in the survey, rose 8.1 percent to $974.

The vacancy and rental-rate survey is conducted to provide the campus and the city of Davis with information for future planning. The results of the 27th annual survey come as the campus is constructing three news residence halls and planning to add thousands of other beds on campus.

"The survey underscores the tremendous need for more housing for students and others," said Bob Smiggen, director of student housing at UC Davis. "We are committed to doing all that we can to help meet the need for housing."

The student housing office surveyed 183 apartment complexes with five or more rental units in October and November; 168 complexes responded. Out of a total of 8,376 units, just 14 were vacant. The 15 complexes that did not respond to the survey have a total of about 225 units.

Economists and planners consider a vacancy rate of 5 percent to be the ideal balance between the interests of landlord and tenant, the report said. "At this time the ideal is not probable in most rental markets throughout the state of California," it went on to say.

Among 11 types of rental units, the highest average rent increase was 45.29 percent for five unfurnished five-bedroom apartments (to $2,470 a month). All other increases ranged from 3.49 percent for a furnished one-bedroom apartment to 9.67 percent for an unfurnished six-bedroom apartment ($2,166).

UC Davis had a total of 29,087 undergraduate, graduate and professional students in fall 2002, an increase of 1,795 from the previous fall. On the main campus, the student population is expected to average 26,500 over the three quarters of the academic year.

In fall 2003, the campus, which currently houses 5,300 students, is scheduled to open three new residence halls to accommodate up to 382 first-year students in the existing Segundo residential area, southeast of the intersection of Russell Boulevard and La Rue Road. A new dining commons in the same area is scheduled to open in the spring of 2004.

The campus is proceeding with the environmental impact report for its Long Range Development Plan. It's anticipated that the plan and its environmental impact report will incorporate additional housing for up to 5,000 students, including a project now being designed for the existing Tercero residential area.

To help students in their search for housing for the next academic year, student housing offers workshops in the residence halls beginning in late January. The sessions offer information on the local rental scene, provide search tips and address topics from budgeting to leases.

The Associated Students of UC Davis hosts an annual "Housing Day" in February. Students have the opportunity to meet with representatives from local apartment complexes and to gather other information and tips for renting.

Other resources available to students include Web sites with information on Davis complexes; available apartments; and student rankings of complexes on such things as maintenance response time, frequency of problems and study atmosphere.

The survey excludes those apartments that require an income eligibility test to qualify low-income residents for reduced rent, because students are not eligible for these units.