The apartment vacancy rate in the city of Davis rose to its most favorable status for tenants since 1994, but, in contrast, rents rose by an average of 7.2 percent, according to a fall survey by the University of California, Davis.

The apartment vacancy rate rose from 0.2 percent last year to 1.7 percent this fall. 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 on top of last year's 6.93 percent rise.

The average monthly rent for unfurnished two-bedroom apartments, which account for about 42 percent of the apartment units in the survey, rose 5.95 percent, from $974 to $1,032.

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 28th annual survey come as the campus has added three new residence halls and is planning to add more beds on campus in the near future to continue to be able to accommodate all freshmen wanting to live in residence halls.

"We are pleased that the rental housing market is improving somewhat for tenants," said Bob Smiggen, director of student housing at UC Davis. "However, the survey continues to reinforce the need for more housing for students and others."

The student housing office surveyed 187 apartment complexes with five or more rental units in October and November; 180 complexes responded. Out of a total of 9,200 units, 158 were vacant. The seven complexes that did not respond to the survey have a total of 156 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 12 types of rental units, the highest average rent increase was 17.94 percent for two unfurnished five-bedroom apartments (from $2,470 to $2,913 a month). All other increases ranged from 3.02 percent for furnished studio apartments (from $597 to $615) to 11.93 percent for unfurnished three-bedroom apartments (from $1,383 to $1,548).

Unfurnished six-bedroom apartments were the only rental type for which the rent decreased. The average rent for the four units decreased 0.97 percent, from $2,166 to $2,145.

UC Davis had a total of 30,229 undergraduate, graduate and professional students at all campus locations in fall 2003, an increase of 1,142 or 3.8 percent from the previous fall. On the main campus in Davis, the student population is expected to average 27,500 over the three quarters of the academic year.

In addition to about 4,350 freshmen in campus housing, almost 1,800 other students live in student housing facilities, privately owned projects or family housing at UC Davis.

In September, the campus opened three new residence halls to accommodate about 380 first-year students. In the community, two private complexes -- with a combined capacity for about 850 residents -- opened on Olive Drive and on Cantrill Drive this fall.

In spring 2004, construction will begin on residence halls for more than 400 students and an expansion of the dining commons in the Tercero area on campus. Both projects are scheduled for completion in fall 2005.

Under its Long Range Development Plan, approved by the UC Board of Regents in November, the campus is also planning a 224-acre residential neighborhood with about 1,600 affordable housing units for students, faculty and staff. Construction is expected to begin on the first student housing complexes in 2004-05, and the neighborhood could ultimately house about 4,350 residents when completed by 2015.

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," this academic year on Feb. 10. 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 typically are not eligible for these units.