Small Multifamily Investment Snapshot — Q3 2020
Annualized 2020 estimates of new multifamily lending volume on loans with original balances between $1.0 million and $7.5 million ticked down to $52.1 billion through the third quarter. In 2019, small multifamily originations reached an all-time high of $59.2 billion. The current estimate falls below last year’s annual pace by $7.1 billion and represents a 12.0% decline in lending activity.
As measured by the Arbor Small Multifamily Price Index, small multifamily prices stabilized in the third quarter of 2020, up 1.3% from the second quarter and 0.1% from one year ago. Moreover, revised second-quarter estimates indicate that national pricing of small multifamily assets held up better than previously reported. With the updated estimates, prices fell just 0.7% from the prior year.
Here’s a quick look at the Q3 2020 small multifamily benchmarks.
For more insights on the small multifamily market, view our Q3 2020 Small Multifamily Investment Trends Report.