Small Multifamily Investment Snapshot — Q1 2023

Through the first quarter of 2023, the small multifamily subsector lies in a unique position, battling financial sector headwinds on one side while benefiting from structural tailwinds on the other.
After the failures of Silicon Valley Bank and Signature Bank in March, lenders, especially regional banks with less stringent capital requirements and greater interest rate risk exposure, have become more conservative. As a result, new purchases and originations of small multifamily properties saw much lower levels of activity than in previous quarters.
While financial market conditions could restrain new activity, the structural health profile of small multifamily households remains largely intact — a factor that should allow the sector to limit distress between now and when a period of interest rate normalization arrives.
Access key highlights in our Small Multifamily Investment Trends Report.
For more insights on the small multifamily market, view our latest Small Multifamily Investment Trends Report and the rest of our multifamily research.