Small Multifamily Investment Snapshot — Q1 2020

With COVID-19 beginning to influence markets in March, annualized first-quarter 2020 estimates of new multifamily lending volume on loans with original balances between $1 million and $7.5 million fell to $55.2 billion. In 2019, small multifamily originations reached an all-time high of $59.2 billion. The Q1 2020 small multifamily lending volume is below last year’s annual pace by $4.0 billion and would represent a 6.7% decline in lending activity.
Small multifamily prices slowed in the first quarter of 2020, as measured by the Arbor Small Multifamily Price Index. According to initial estimates, while small multifamily prices are up 5.5% from one year ago, they receded by 0.9% from the fourth quarter of 2019. On a year-over-year basis, valuations have increased for 37 consecutive quarters, dating back to mid-2010.
Here’s a quick look at the Q1 2020 small multifamily benchmarks.
For more insights on the small multifamily market, view our Q1 2020 Small Multifamily Investment Trends Report.