While most markets across the US have suffered through layoffs and decreased in wages, the multifamily markets of well-established areas like Washington, DC and other high barrier-to-entry locations on the coasts have persevered, relatively speaking. The District will be one of the first metro areas to come out of the recession, since job and population growth will provide enough demand counterbalance new deliveries. Landlords may even be able to increase rents, albeit marginally.

Taking the number-two spot on the NAI is San Diego, which rose four places due to expectations for comparatively low vacancy and slightly rising rents, unlike most other areas of the country. Rounding out the top three is New York City. The Big Apple ended 2009 as the strongest apartment market, but fundamentals have deteriorated slightly. As financial and professional services firms pick up the pace on hiring, it's anticipated that vacancy will begin to tick down.

Vacancy remains tight in the Twin Cities of Minneapolis-St. Paul, but rent declines kept this market at the number four spot. And a lack of job growth in the Philadelphia region has bumped that market down three notches to number five.