The ongoing housing crisis proves that another man’s loss may be another one’s gain. While the housing sector continues to lose sales, the apartment trade is continually getting renters. The growth, though, may not be sustainable given the current economic state.

In Orlando, the apartment sector fared well during the first half of the year. The number of vacant apartments went down in January to June of 2010 as those who lost their homes via foreclosure went to seek refuge in renting houses. Real estate investment services firm Marcus & Millichap, however, warns not to be too confident as the rebound may not be sustained unless the economy expands further.

Hiring by local employers is currently slowing down and this may cause a dent in the household growth. Also, the demand driver in the second half of most calendar years, which is relocation from other regions, might remain weak for this calendar year. The weak job market and the soft housing market are forcing people to stay put where they are.

Another reason for rent to decline is the continued interest in properties when they are listed. Experienced local buyers are now actively looking for bank-owned and Class B listings.

Another thing that Marcus & Millichap included in its third-quarter report is the weakening of construction. The report states that 2010 will deliver on 1,400 apartments – almost 50% down from last year’s 2,200 units. Even permitting remained down and planning pipeline declined to 7,300 units.

Marcus & Millichap, predicting a slower job growth for the second half of the year, also reported an expected vacancy level near what was recorded in the second quarter of 2010. Even asking rents will remain down, with a 2.6% dip to a median of $820 per month. In 2009, asking rent was down by 5.4%.