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Orlando apartments market continues to weaken, as demand for housing slackens because of declines in tourism-related employment, according to Marcus & Millichap's second-quarter report.

The real estate investment-services firm said last week the local market's overall vacancy rate has climbed to nearly 10 percent and is expected to reach 11.1 percent.

Construction this year will slow to 900 units, down sharply from nearly 3,400 units in 2008. Still, tenant demand will remain tepid because of the recession. Asking rents are forecast to fall 2.5 percent to $868 a month, while effective rents are expected to decline 3.3 percent to $798 a month.

"Activity has been slow in the investment market, but some buyers are beginning to stir," said Dan Colachicco, regional manager in the atlanta apartments. "The median price is down about 25 percent from a peak in 2007 but has fallen only 8 percent in the past year, suggesting that the bottom of the market may be near."