Small balance multifamily lending volume in the first half of 2019 totaled $58.5 billion on an annualized basis, representing a 7.9% gain from 2018’s total. Read our Q2 2019 Small Balance Multifamily Investment Trends Report for more insights on the sector.
Since 2005, the number of single-family rental (SFR) households had swelled by more than 36%. Over the same period, total U.S. households increased by 11%.
In Part 2 of this new video series from Arbor and Chandan Economics, we focus on the small balance multifamily market’s fundamentals and performance throughout this cycle.
Small Balance Lending Surges Through First Half of 2019 Small balance multifamily lending volume in the first half of 2019 totaled $58.5 billion on an annualized basis, representing a 7.9% gain from 2018’s total. Whether the macroeconomic and real estate cycle continues to lengthen or we begin to see signs of a market correction, we can expect the small balance market to hold steady as lenders continue to maintain conservative underwriting. In the interim, favorable interest rates will elevate refinancing activity, and the sector’s continued maturation and increased agency support will continue to promote liquidity in the space. For more insights on the small balance multifamily sector, read Arbor Chatter’s “Q2 2019 Small Balance Multifamily Investment Trends Report.” Explore charts and insights, including: Lending Volume Cap Rates & Spreads Interest Rates Leverage & Debt Yields
With LIBOR set to expire at the end of 2021, multifamily lenders are preparing to transition to an adjustable-rate alternative. The Secured Overnight Financing Rate (SOFR) has been recommended by several industry players as the preferred alternative.
A big topic of conversation throughout this economic cycle has been if the multifamily sector is oversupplied. However, perhaps the more important question for investors should be about demand, noted Greg Willett, chief economist at RealPage, speaking on a panel at the 2019 MBA CREF Market Intelligence Symposium.
Women make up a slightly larger share of seniors co-living in apartments, while divorcees and those separated form the largest group of co-living seniors.
From in-depth reports to impactful articles, Arbor is your source for exclusive content about key trends impacting investment within commercial real estate markets, including multifamily, single-family rentals, and affordable housing.
Preliminary findings show that cap rates tightened in recent quarters for multifamily properties backed by small balance loans. The spread between cap rates on small and large properties also narrowed.
High speed internet and safe delivery of packages are two renter demands that today’s apartment property manager must meet.
Americans living in small apartment buildings outnumber renters in large properties more than three-to-one.
Whether you end up taking an Agency or Bank loan on your next apartment deal, there is no shortage of questions to ask your lender.
Cross-border multifamily investment reached new highs during 2015, with Canada leading the pack.
Job growth is one of the most important factors to consider when deciding where to invest in multifamily properties. After all, a property owner will only be as successful as his or her tenants.