Small Multifamily Investment Snapshot — Q1 2022

Within small multifamily, the start of the new year brought a reversal of some COVID-induced trends. Notably, loan-to-value ratios (LTVs) and debt yields, two metrics that saw hyper-variability due to increased risk aversion, have started to trend back toward their pre-pandemic levels.
All else equal, small multifamily remains resilient heading into 2022’s warm weather months. Small multifamily asset valuations are up an estimated 5.5% year over year, and cap rates are down to just 5.3%. Originations have started to recover, and the share of new lending volume going toward acquisitions increased for the first time in six quarters. Challenges are still a daily reality, but the balance of macroeconomic and small multifamily-specific tailwinds are finally starting to outnumber the headwinds.
Access more key highlights in our Small Multifamily Investment Trends Report.
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