LAKE WORTH, FL-If Chicago-based Laramar Group's move is any indication, activity in South Florida's multifamily market will be robust in the coming months.

Laramar recently opened a South Florida office at 8461 Lake Worth Rd., where it plans to employ six to 10 people and capitalize on opportunities the company sees in the region's multifamily market. As part of the company's plans, it recently acquired the 366-unit Hillsboro Bay Club Apartment in Coconut Creek.

"South Florida will always have dynamic population and job growth so housing is expensive," Laramar Group president Jeff Elowe tells GlobeSt.com. "Renting is a viable option."

The market data seems to support the company's plans. According to a Marcus & Millichap apartment market report for Broward County, the county will retain its place among the nation's most robust apartment markets in 2007. Employers are projected to add 18,500 new jobs this year, reflecting a 2.3% increase. Strong demand and a lack of affordable housing will support a 6.1% increase in asking rents to $1,163 per month. Effective rents are expected to add 6.5% to $1,116 per month.

"Condo conversion has removed a significant portion of units from inventory in a number of markets and tipped the scales in apartment owners' favor," says Gene Berman, managing director of Marcus & Millichap and regional manager of the firm's Fort Lauderdale office. "Also, the recent rise in single-family home prices has lowered housing affordability, further reinforcing rental demand."

According to Marcus & Millichap, Miami-Dade County is experiencing similar trends with local employers projected to create 13,000 jobs this year reflecting a 1.2% increase. Asking rents are projected to increase 5.8% to $1,151 per month while effective rents will increase 6.1% to $1,107 per month.

In Palm Beach County, employment is expected to increase by 13,000 jobs, or 2.2%. This is a decrease over 2006, when 21,000 jobs were created. Despite the drop, asking rents are forecast to increase 5.6% to $1,179 per month and effective rents will advance 6% to $1,117 per month.

If there is a downside to the area's multifamily market, it is the expectation that some properties formerly slated for condo conversion will revert to rentals. "While conversions returning to the rental inventory could negatively impact vacancy in the near term, the long-term trends for tenant demand growth are very positive," Berman says.