Small Multifamily

The small multifamily market has experienced rapid change over the course of this cycle due to improved access to capital, favorable demand and a dramatic step-up in operating efficiency. This new annual report takes a closer look at the sector’s performance by breaking out the top-50 U.S. metros into three tiers and analyzing the markets in terms of origination volume, cap rates, debt yields and more.

Multifamily properties made up 75% of New York City’s rental market. Large multifamily was concentrated in Manhattan, while small multifamily was more evenly distributed among the five boroughs.

Arbor Realty Trust has created the Arbor Small Multifamily Price Index (ASMPI), in partnership with Chandan Economics, to provide new and important data on the small multifamily market that can help shed light on potential investment opportunities in the sector.

Millennial STEAM workers’ preference for small and large multifamily appears to be explained less by absolute income level differences, and more by a variety of personal preferences.

Amenity-rich large multifamily is increasingly geared toward high-skill jobs within the urban core, while the more dispersed and affordable small multifamily cater to a wider mix of workers.

Annualized figures through Q2 2019 totaled $58.5 billion in lending volume, representing a 7.9% gain from 2018. Here’s a quick look at the finance and investment benchmarks for Q2 2019.

Small balance multifamily lending volume in the first half of 2019 totaled $58.5 billion on an annualized basis, representing a 7.9% gain from 2018’s total. Read our Q2 2019 Small Balance Multifamily Investment Trends Report for more insights on the sector.

Adjusted estimates of 2018 lending volume of small balance loans jumped to $53.1 billion, the highest level of activity in Chandan Economics’ post-financial crisis estimates. Initial readings for the first quarter of 2019 totaled an annualized $48.7 billion. Here’s a quick look at the small balance multifamily finance and investment benchmarks for Q1 2019.

Whether a period of economic weakness is years away or just around the corner, the small balance multifamily sector is projected to remain healthy in 2019. Read our Q1 2019 Small Balance Multifamily Investment Trends Report for insights on the market.

Smaller multifamily properties have grown their share of non-family households. On the other hand, large properties are appealing most to married couples. The share of renters living with roommates continues to rise across all apartment property types.