This year's annual UC Davis housing survey offers good news to prospective tenants: The number of available units was the highest in a decade, and the rental rate increase was much smaller than in previous years.

Specifically, the apartment vacancy rate in the city of Davis rose to 4.2 percent this fall, and rental rates rose by an average of 1.81 percent, according to the survey.

The annual vacancy and rental-rate survey, now in its 30th year, is conducted by the Student Housing department at UC Davis. It is intended to provide the campus and the city of Davis with information for future planning.

The 2005 data follow last year's trends, when the apartment vacancy rate was 3.3 percent, nearly double that of 2003, and the average rental-rate increase was 3.75 percent, about half that of 2003.

This fall's vacancy rate of 4.2 percent is close to the 5 percent rate that economists and urban planners consider the ideal balance between the interests of landlord and tenant.

According to the survey, the average monthly rent this year for unfurnished two-bedroom apartments, which are the most abundant type of apartment unit and account for almost 44 percent of the units in the survey, rose 2.15 percent, from $1,069 to $1,092.

"The vacancy rate continued to rise, which is the first time in the past 10 years that there has been any real trend," said Bob Smiggen, director of Student Housing. "The rental market rate in Davis has changed dramatically in the past three years."

Smiggen said several factors contributed to those changes:

• The campus has fewer first-year students and more available on-campus housing;
• In the past few years, more apartment units have been added in the Davis market;
• More students are living outside of Davis and commuting;
• Low mortgage interest rates have helped some Davis renters (mostly non-students) buy homes.

UC Davis Student Housing surveyed 188 apartment complexes with five or more rental units in October and November; 176 complexes responded. Out of a total of 8,750 units reported, 371 were vacant. The 12 complexes that did not respond to the survey have a total of approximately 176 units.

Among 12 types of rental units included in the survey, the highest average monthly rent increase was 10.98 percent for 39 furnished studio apartments (from $674 to $748). All other increases ranged from 0.86 percent for furnished one-bedroom apartments (from $816 to $823) to 9.25 percent for furnished two-bedroom apartments (from $1,027 to $1,122).

Rents decreased for three types of rental units. The largest decrease was 3.32 percent for 661 unfurnished four-bedroom apartments (from $2,111 to $2,041).

The overall average increase in the rental rate is calculated by considering the percentage change for each type of rental unit and the proportion of each type of rental unit among the entire rental inventory.

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

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 mid-February. Students have the opportunity to meet with representatives from local apartment complexes and to gather other information and tips for renting.