The Arbor Small Multifamily Price Index
Arbor Realty Trust has created the Arbor Small Multifamily Price Index (ASMPI), in partnership with Chandan Economics, to provide new and important data on the small multifamily market. Given the shortage of affordable rental housing in the country, this newly available data will help shed light on potential investment opportunities in the small multifamily market, which often serves low- and middle-income renters. Watch the video below for more background on the ASMPI.
Arbor Small Multifamily Price Index Definition
The index uses model estimates of small multifamily rents and compares them against small multifamily cap rates. The index measures the estimated average price appreciation on small multifamily properties with five to 50 units and primary mortgages of $1 million to $7.5 million. For the full methodology and more information on the ASMPI, visit our FAQ page.
Small multifamily prices, as measured by the newly created Arbor Small Multifamily Price Index, are continuing to rise at a robust clip. According to initial estimates, small multifamily prices are up 1.3% from the first quarter of 2019 and 6.9% from the second-quarter of 2018. Prices are up above their 2010 low watermark by 78%, and they have surpassed their previous cyclical peak by 36%.