Small multifamily starts the year from a position of strength with normalizing expense ratios and healthy occupancy rates. After demonstrating resiliency amid headwinds, this subsector is ready to capitalize on any positive momentum in the financial markets. Arbor’s Small Multifamily Investment Trends Report Q1 2024, developed in partnership with Chandan Economics, examines and explains the key developments every investor needs to know.
In the previous two years, Sun Belt markets dominated the top rent growth lists, as pandemic-related re-shuffling settled. In 2023, the list of top markets became much more diverse.
The most recent America’s Rental Housing 2024 report published by Harvard’s Joint Center for Housing Studies (JCHS) takes a detailed look at the state of the rental housing industry.
As part of its focus on mission-driven lending, Fannie Mae recently introduced a new loan product designed to expand affordability and increase accessibility in communities across the country. The government-sponsored agency’s new Sponsor-Dedicated Workforce (SDW) Housing product provides financing for the creation and preservation of affordable workforce housing in underserved communities without the necessity of government subsidy.
As borrowing costs rose and rent growth slowed, multifamily developers pulled back the reins in 2023. Nationally, the number of multifamily building permits sank 20.3% last year, according to the latest data from the U.S. Census Bureau. However, there are many metropolitan markets where activity has not slowed. In this deep dive, our research teams show which metros led the nation in multifamily permitting activity in 2023.
Boston’s strong labor market and new lifestyle amenities are translating into greater success for the metro’s small multifamily sector.
Arbor Realty Trust and Chandan Economics analyze trends of who is living in single-family rentals, small multifamily and large multifamily housing.
Multifamily rental demand is undergoing a multi-generational transformation. While millennials still form the dominant share of renters in the U.S., Gen Z’s impact is growing and will only continue to increase in the years ahead.
Annualized small multifamily lending volume reached $59.2 billion in Q4 2019. Here’s a quick look at the quarter’s small multifamily investment and finance benchmarks.
An estimated 31.2 million households, or 28% of total U.S. households, fell within the workforce segment by year-end 2018. Forty percent of workforce households, or around 12.4 million, are renters.
Year-end 2019 estimates for small multifamily lending volume reached $59.2 billion, beating the prior quarter’s forecast by $1.4 billion and marking the highest level of activity in Chandan Economic’s post-crisis model estimates. Download the Q4 report for key insights on the small multifamily market.
Small multifamily promotes greater accessibility to housing for workforce households than large multifamily. About 62% of all small multifamily households made less than $50,000 annually.
Renter income growth In small multifamily properties was slightly above the national average, while large multifamily households saw market-leading gains.
Small multifamily rents have been growing faster in metro areas with rent levels below the national average. This phenomenon has, by and large, also been true for the large multifamily asset class.
Four major California cities were the most expensive areas in the nation for small multifamily rentals, reflecting the state’s ongoing affordability crisis.