Inflation far out paced changes in rents in 2002 and even the lure of living in bustling downtowns wasn't always a rent booster.

That's good news for those who want to lock in a long term rental contract now and save up for home buying when the economy settles down.

Comparing the fourth quarter 2001 survey with the fourth quarter 2002 survey of more than 3.7 million apartments nationwide, Carrollton, TX-based M/PF Research said rents fell an average 0.3 percent in 2002, with 31 of the 58 metros surveyed giving up rent reductions.

Meanwhile, the U.S. Labor Department's Consumer Price Index jumped 2.4 percent during the same period, thanks largely to increases in energy prices. The index represents changes in the prices paid by urban consumers for a representative basket of goods and services.

Regionally, the Northeast and the West yielded the most attractive spreads between rent changes and inflation.

The Northeast, with the sharpest difference, yielded a 0.4 percent drop in rents as the region's CPI rose 2.9 percent, the largest price hike in the nation. The West registered an 0.8 percent decrease in rents, the largest such decrease, and a 2.1 percent growth in prices. The Midwest wasn't far behind with rents falling 0.6 percent and prices rising by 2.1 percent. Only the South's rents didn't rise, but remained flat while prices increased 2.5 percent.

Some of the largest rent drops by the third quarter last year were found in the metropolitan areas of San Francisco, 13.1 percent; Oakland, CA 7.6 percent; Raleigh, 6.9 percent; Seattle and Austin 6 percent; Boston 3.7 percent; Minneapolis, 3.1 percent and Chicago, 2.6 percent, according to M/PF.

Novato, CA-based RealFacts says falling markets typically yield city rents that hold up better than suburban rents and the downtown core weathers the storm best, thanks largely to the benefit of downtown's desired location.

In San Diego, for example, rents citywide rose 5.3 percent last year, but downtown rents rose 11.1 percent, RealFacts reported. In Denver citywide rents rose only 2.9 percent, but rents downtown increased by a whopping 14.1 percent, nearly five-fold over the city as a whole.

Not all cities, however, enjoyed a boost from the central base.

In San Jose, for example, average rents dropped 8.9 percent citywide, but downtown rents plummeted 15.4 percent. Downtown Los Angeles' rents fell by 0.3 percent last year, but citywide rents were up 6.6 percent.

"Each market must be analyzed to see how its particular conditions impact this relationship," said Caroline S. Latham, CEO of RealFacts.

Terry Feinberg, executive vice president of the Arizona Multihousing Association in Phoenix -- where rents were flat across the board -- agrees.

"The single biggest factor affecting rents anywhere is jobs. Jobs drive demand, and especially given long development lead-times, supply can never keep up with the increasing demand from strong job growth," Feinberg said.

"Of course when an area loses jobs, the number of rental units available does not decline, so we see rents go down. Most people who live in apartments are not willing to endure long commutes, and thus apartment rents are more closely tied to very localized job conditions," he added.

How do you get the best deal in any market?

Be prepared.