MIAMI—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 the multifamily sectoracross 21 states, says rent growth is strong for class B and Capartment communities in the Southeast, especially those that servethe US workforce renter. Rent growth, he continues, is slowing abit for class A properties but the overallmultifamily market is still hitting on allcylinders. But he does have one concern.

“The vast majority of new apartmentconstruction is urban and high-end—class A-plus construction—thattargets rents at or above $2,000 per month. There is virtually nonew apartment supply being built for theworkforce,” Finkel tells GlobeSt.com. 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.