The city ranked No. 15 last year and is forecast to reach No. 5. The jump is the result of high employment and rent growth, and low completions. Employment is expected to increase at one of the quickest rates in the country, as the city should gain 19,000 new jobs, the report states.

However, apartment absorption should stay flat because single-family homes in Broward County--where Fort Lauderdale is located--are more affordable than in nearby Miami-Dade and Palm Beach counties, the report adds.

The report also states vacancy rates are expected to increase some, but not enough to stop multifamily investment in the city's metropolitan service area. Investors are forecast to continue pursuing multifamily properties, and the expected interest rate increase should help stabilize the multifamily market. In addition, apartment operators' revenue should grow this year, as effective rents are increasing and vacancies are moderate.