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.