MIAMI—It's not a new story, but multifamily remains the hottest trend in the Southeast. You can measure the temperature of the multifamily market in the region by drilling into the major metros. According to Marcus & Millichap, metrowide vacancy in Atlanta has improved nearly 500 basis points since 2009 to hit 4.9%. In Miami, vacancy sits at 3.5%. Orlando sits at 6%.

Kevin Finkel, executive vice president of Resource Real Estate, which focuses on the multifamily sector across 21 states, says rent growth is strong for class B and C apartment communities in the Southeast, especially those that serve the US workforce renter. Rent growth, he continues, is slowing a bit for class A properties but the overall multifamily market is still hitting on all cylinders. But he does have one concern.

“The vast majority of new apartment construction is urban and high-end—class A-plus construction—that targets rents at or above $2,000 per month. There is virtually no new apartment supply being built for the workforce,” Finkel tells GlobeSt.com. He expects this to be a long-term trend because there is no market or governmental mechanisms that encourage developers to create new workforce housing with rents at about $1,200 per month given the high cost of land and construction.

“We believe multifamily real estate firms with the experience and capabilities to fully renovate the aged apartment inventory available today into upgraded rental options that are in high demand by today's workforce offer a significant opportunity,” Finkel says.

Meanwhile, there are plenty of new multifamily projects rising from Southeast dirt. The Related Group has been especially active, starting four multifamily projects in South Florida in 30 days. And affordable housing developers are targeting Miami, the nation's least affordable major city, according to the Center for Housing Policy.

Multifamily investors are snapping up opportunities in Southeast markets and lenders are betting on new multifamily developments like Melody Tower, which recently won a $67 million construction loan from TotalBank. RADCO has been one of the most active Southeast multifamily buyers. The firm now owns 26 multifamily communities with over 7,000 units in six Southeast and Midwest cities—and grabbing most of them in the past two years and largely focusing on Georgia.

“We are intimately familiar with the Georgia marketplace and have invested a significant amount of capital into the community,” Norman J. Radow, CEO of RADCO, tells GlobeSt.com. “In particular, Metro-Atlanta has enjoyed an improved job market, with recent employment increases in construction, retail and hospitality. We expect to acquire additional properties in Georgia over the coming months.”