Our quarterly report on the current and emerging small multifamily investment trends features data and research from Chandan Economics. The report reviews the state of the market, identifying trends in underwriting, financing, cap rates, valuation and more. In the report, you’ll learn how small multifamily properties differ from larger properties, and the forces driving their investment performance. Key Findings: Small multifamily originations jump by 48.1% in 2021, reaching $85.4 billion. The refinancing share of originations has settled back near a normal, pre-pandemic range. Asset prices rose a robust 9.7% from a year earlier. Complete the form to instantly access the full report!
Top U.S. Multifamily Markets of the Decade
Over the course of the decade, the multifamily real estate market emerged as a premier asset class. Demand was driven not only by the shifting demographics, but also housing affordability issues surrounding escalating prices, limited supply and stagnant wage growth. See our breakdown of the decade’s top-performing multifamily markets.
Slowdown in Apartment Filtering Impacts Workforce Housing Supply
The natural apartment filtering process of new supply declining in quality and value as it ages has provided low-income renters with access to more affordable housing options. The Great Recession, however, caused a break in the filtering pattern, leaving a shortage of workforce housing supply during this recovery.
Top Technology Trends Set to Impact the Apartment Sector
While many early technology solutions have been operationally focused, advanced technology like artificial intelligence and data analytics tools now allow owners to focus their efforts on improving the customer experience, panelists noted at the recent NMHC Annual Meeting in Orlando, FL.
Multifamily Development Strategies and Challenges in 2020 and Beyond
Key strategies for development, including building for long-term holds and adapting to changing renter profiles, were discussed at the recent NMHC Apartment Strategies Outlook Conference in Orlando, FL.
Small and Large Multifamily Renter Income Growing the Fastest
Renter income growth In small multifamily properties was slightly above the national average, while large multifamily households saw market-leading gains.
Small Multifamily, Small Cities Are Riding the Same Rising Tide
Small multifamily rents have been growing faster in metro areas with rent levels below the national average. This phenomenon has, by and large, also been true for the large multifamily asset class.
Rents in Major California Cities Among the Highest in the U.S.
Four major California cities were the most expensive areas in the nation for small multifamily rentals, reflecting the state’s ongoing affordability crisis.
Small Multifamily Rent Growth Leads All Other Property Types
Small multifamily rent growth is fueled by the asset class’ proximity to job centers, larger unit sizes and relative affordability to other rental property types.
Our Top 10 Posts of 2019
Market reports and trends pieces topped the list of Chatter’s top 10 most popular posts of 2019. See the articles and topics that you found most interesting this year.
Top U.S. Markets for Small Multifamily Rental Inventory Growth
Small multifamily properties are growing the quickest as a share of rental inventory outside of the largest U.S. metro markets.