ATLANTA—It's not a new story, but multifamilyremains the hottest trend in the Southeast. You can measure thetemperature of the multifamily market in theregion by drilling into the major metros. According toMarcus & Millichap, metrowide vacancy inAtlanta has improved nearly 500 basis points since 2009 to hit4.9%. In Miami, vacancy sits at 3.5%. Orlando sits at 6%.

Kevin Finkel, executive vice president ofResource Real Estate, which focuses on themultifamily sector across 21 states, says rentgrowth is strong for class B and C apartment communities in theSoutheast, especially those that serve the US workforce renter.Rent growth, he continues, is slowing a bit for class A propertiesbut the overall multifamily market is stillhitting on all cylinders. But he does have one concern.

“The vast majority of new apartment construction is urban andhigh-end—class A-plus construction—that targets rents at or above$2,000 per month. There is virtually no new apartment supply beingbuilt for the workforce,” Finkel says. He expects this to be along-term trend because there is no market or governmentalmechanisms that encourage developers to create new workforcehousing with rents at about $1,200 per month given the high cost ofland and construction.