Washington D.C. is the first and Northern Virginia the second “most promising” real estate markets in the U.S. now, according to the 31st annual ‘Emerging Trends in Real Estate’ report, published this week by The Urban Land Institute (ULI) and PricewaterhouseCoopers LLP.

The report notes that pent-up, delayed demand for apartments continues to grow while young adults temporarily move in with family or friends. Demand for apartments is expected to take off as employers start to hire again.The report says that “high density infill markets convenient to commercial districts and mass transit” are the “best bets for multifamily housing” this year.

According to the Urban Land Institute’s measure of “Emerging Trends in Real Estate,” Washington, D.C. is the number one “most promising” region in the U.S., followed by Northern Virginia, and then San Francisco, Austin, Boston, New York, Houston, Seattle, Raleigh/Durham and Denver, in that order.