Research

While Gateway markets like New York and San Francisco still dominate, the STEAM job market (think STEM plus arts) is increasingly moving to Secondary markets.

The U.S. multifamily market continued to post positive results during Q1 2017. Rent growth remained strong, while vacancy remained low and demand kept pace with high levels of new supply. Investment activity was slow to start the year, although prices continued to increase.

Evaluating household income by renter segments helps apartment investors better position and price their units. In the case of small properties, married couples and individuals sharing rental units have significantly higher incomes.

Growth trends for small asset renters in highly skilled occupations are encouraging. These findings align with projected job growth forecasts into the middle of the next decade.

Despite a marginal improvement for small property renters, housing affordability levels remain uneven across the major metros in the US.

Dallas was one of the hottest multifamily markets in the U.S. during 2016. Rent growth accelerated as vacancy reached historic lows, strong employment growth continued to drive new development, and investment activity reached record highs.

Though the rent gap between small and larger properties is shrinking for studio and one-bedroom units, new Census data shows that there are still substantial savings for larger units in smaller properties.

The multifamily market has arguably been the highest performing asset class of any over the last few years. Apartment rents have climbed 5% to 10% in some markets. Cap rates are at their lowest as investors have poured billions into owning these properties.

Here’s a quick look at the small balance multifamily finance and investment benchmarks for Q4 2016.

The most recent update from the Census Bureau indicates that the small multifamily rental market experienced a steeper year-over-year increase in rents compared to both larger properties and historical trends.