Small Multifamily Investment Snapshot — Q2 2020

Annualized second-quarter 2020 estimates of new multifamily lending volume on loans with original balances between $1 million and $7.5 million — including loans for rental apartment building sales and refinancing — fell to $53.1 billion. In 2019, small multifamily originations reached an all-time high of $59.2 billion, according to Chandan Economics’ post-financial crisis market tracking and model estimates.

Small multifamily prices, as measured by the Arbor Small Multifamily Price Index, fell in the second quarter of 2020 by 5.6% — the first year-over-year decline since 2010. The reading marks an inflection point for a market that had unabated annualized price growth for 38 consecutive quarters.

Here’s a quick look at the Q2 2020 small multifamily benchmarks.

For more insights on the small multifamily market, view our Q2 2020 Small Multifamily Investment Trends Report.