Mint Urban Red River, in Austin, Texas, was named "Property of the Year" by the Austin Apartment Association. The 138-unit development is owned and managed by Cardinal Group Management. It was completely renovated in 2013. Photo courtesy of Cardinal Group Management.

In its recently released Apartment Market Outlook, commercial real estate advisory firm Sperry Van Ness (SVN) says that while multifamily was the first sector to emerge from a “recessionary slump,” it “continues to offer widespread potential for further gains.” SVN offers a caveat though, which, not surprisingly, is about supply.

“Investors must be cognizant of rising inventory levels, however, and the potential for declining rents in submarkets where construction is getting too far ahead of demand,” notes the report.

Still, the report says things look good for areas that can attract Millennials. “Because young professionals, as a group, are more amenable to moving to new communities than their predecessors, Millennial populations may expand quickly in cities with healthy employment growth,” according to the report.

So, which metros made the cut? Here are SVN’s 10 markets to watch in 2014:

  • Austin, Texas
  • Boston
  • Dallas
  • Denver
  • Houston
  • Kansas City, Mo.
  • Las Vegas
  • Portland, Ore.
  • Raleigh and the Research Triangle, N.C.
  • Tucson, Ariz.