Small Multifamily

One way to look at the drivers for Millennial demand across US metros is to consider their concentration. Their concentration is shown here as an index of the Millennial share in small properties (5 to 49 units) to their share in the wider metro population.

Here’s a quick look at the small balance multifamily finance and investment benchmarks for Q4 2017.

Aided by growth in agency lending and refinancing activity, the volume of new multifamily loans with balances between $1 million and $5 million reached $49.8 billion during 2017

For their relatively lower rent levels, small apartment properties are surprisingly well-rated by their occupants, both in terms of unit quality and the neighborhoods in which they are located.

While apartment renting remains a predominantly urban affair across both the downtown and suburban areas of large US metros, renting activity is expanding into smaller cities and new property types.

As apartment developments find new takers in the suburban areas of the largest US metros and regional transit connectivity continues to improve, more small building households are beginning to give up cars.

While Internet access makes steady inroads in small apartment buildings, renter preference for faster connectivity is shifting access to newer technologies.

From the fastest growing metro markets and the factors that determine rent growth to tech solutions and the future of amenity offerings, ALEX Chatter has been your go to source for multifamily news and information.

Here’s a quick look at the small balance multifamily finance and investment benchmarks for Q3 2017.

While Q3 2017 small balance multifamily lending activity decreased 3.1 percent from Q2 2017, we’re still on pace for a new annual benchmark in the space.