Small Multifamily Investment Snapshot — December 2023

As 2023 comes to a close, the small multifamily sector is in the midst of resetting and adjusting to new capital market realities.
While underwriting criteria for small multifamily properties remain tight in a challenging market environment, lending standards held steady in the third quarter of 2023. Market clearing prices continue to edge lower, though the pace of depreciation has slowed, and new deal activity is starting to pick up. Further, the operational profile of the small multifamily subsector has held strong, with rent collections remaining at healthy levels and expense ratios normalizing.
Access key highlights in our latest Small Multifamily Investment Trends Report.
Interested in the multifamily real estate investment market? Contact Arbor today to learn about our array of multifamily, single-family rental, and affordable housing financing options and view our other market research and multifamily articles in our research section.