2019 Metro Level Investment Trends Report

Small Multifamily Market Has Impressive Performance Over This Cycle During this expansion, the small multifamily sector has experienced improved access to capital, favorable demand and a dramatic improvement in operating efficiency, solidifying the sector’s standing as an attractive asset class.   The “2019 Metro-Level Small Multifamily Investment Trends Report” breaks down the top U.S. metros into three tiers to provide a closer look at the small multifamily sector’s performance over this cycle.   The report offers proprietary data on: Originations Cap Rates Debt Yields Expense Ratios


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 that can help shed light on potential investment opportunities in the sector.


Q: What is the Arbor Small Multifamily Price Index (ASMPI)? A: The ASMPI estimates the average price appreciation for small multifamily properties on a quarterly basis, by comparing small multifamily cap rates and small multifamily rents.   Q: What is an index? A: • An index starts with an assigned base, then increases or decreases with the change in value. In the case of the ASMPI, a base value of 100.0 is assigned to Q1 2000. • For example, if the ASMPI stood at 100, then increased 5.0% during the quarter, the new value would be 105. Likewise, if the index decreased 5.0%, the new value would be 95. • Other frequently used indices in the real estate industry include the S&P CoreLogic Case-Shiller Home Price Index and the Consumer Price Index.   Q: What is the purpose of the ASMPI? A: • Given the lack of affordable rental housing supply to meet the robust demand, the index’s quarterly data provides insights on potential investment opportunities in the property sector. • The index fills an important need in the marketplace Read the full article…

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