Small Multifamily Sector Returns to Normalcy as the Recovery Takes Hold Trends in the small multifamily sector reflect the recovery of the broader industry. This quarterly report features exclusive, timely data and insights on the small multifamily finance and investment trends for the second quarter and what’s ahead for the year. Key Findings Include: Acquisitions made up a larger share of lending volume as refinancings settled Asset prices climbed above their pre-pandemic mark Cap rate compression continued its long-term trend Loan-to-value ratios reversed their freefall Complete the form to instantly access the full report!
U.S. Multifamily Market Snapshot — Q1 2019
Q1 2019 marked the 37th consecutive quarter of rent growth for the U.S. multifamily market. Vacancy remained at historic lows, amid high levels of development activity. At the same time, cap rates continued to decline. Here’s a quick look at the U.S. multifamily market finance and investment benchmarks for Q1 2019.
Pace of Income Growth Faster for Renters than Homeowners
While significant income differences remain between owner and renter households, growth in income is the fastest among apartment renters. This bodes well for short-term multifamily operating fundamentals.
Small Balance Multifamily Investment Snapshot — Q1 2019
Adjusted estimates of 2018 lending volume of small balance loans jumped to $53.1 billion, the highest level of activity in Chandan Economics’ post-financial crisis estimates. Initial readings for the first quarter of 2019 totaled an annualized $48.7 billion. Here’s a quick look at the small balance multifamily finance and investment benchmarks for Q1 2019.
Top Markets Attracting Millennial Renters from Other States
The top metros attracting Millennial renters from other states are typically medium-sized with relatively fast-growing economies.
Q1 2019 Small Balance Multifamily Investment Trends Report
Whether a period of economic weakness is years away or just around the corner, the small balance multifamily sector is projected to remain healthy in 2019. Read our Q1 2019 Small Balance Multifamily Investment Trends Report for insights on the market.
4 Reasons to Consider Single-Family Rental Investment
Those considering investment in the residential arena of commercial real estate, should consider single-family rentals (SFRs). Here are some reasons why.
Staying Put: Young Adult Renters are Moving at Declining Rates
While higher shares of young adults move into apartment buildings annually, moving rates for this age group are in decline, keeping with the broader national trend.
Single-Family Rental Portfolio Financing Trends
As commercial real estate investors move further out on the yield spectrum, they are increasingly considering the single-family rental (SFR) asset class. Large portfolio transactions have made headlines in recent years, yet individual investors still own 80% of the SFR marketplace.
Beyond the Nest: Young Adults in Multifamily are Less Likely to Live with Relatives
Young adults in multifamily properties are less likely to still be living with their parents compared to the overall young adult U.S. population, which includes those in owner-occupied homes and all rental housing.
Older Renters are Increasingly Living Alone
A growing share of older renters is living alone, with small asset properties experiencing robust gains from this demand segment.