Small Multifamily Investment Snapshot — December 2025

The small multifamily market is on firmer footing as measures of asset pricing and performance have started to rebound following a two-year period of recalibration.
Across the multifamily sector, tailwinds and headwinds both remain visible. In markets where construction levels have been high, supply imbalances are now suppressing rent growth, while pipelines remain strong in metros with declining rent prices. At the same time, national tenant rent collections data has painted a picture of improvement and cautious optimism.
Looking beyond short-term economic instability, the long-term outlook for small multifamily remains decisively positive, supported by attractive pricing and strong demand for market-rate housing.
Examine the full details of this sector 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 or view our multifamily articles and research reports.
