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.

Arbor’s Small Multifamily Investment Trends Report Q4 2023, developed in partnership with Chandan Economics, is a snapshot of a strong and resilient subsector continuing to navigate ongoing market dislocation. The report shows that distress has remained limited, even with valuations and measures of risk pricing in flux. As conditions start to stabilize, there are signs that deal activity is picking up.

Through the first half of 2023, market disruptions have had limited impact on the overall performance of the small multifamily subsector even as prices fell and cap rates climbed. Arbor’s Small Multifamily Investment Trends Report Q3 2023, developed in partnership with Chandan Economics, delivers data-driven analysis on the subsector’s structural health, shaping its positive outlook.

The small multifamily subsector, strengthened by sound structural fundamentals, is well-positioned to face distress due to interest-rate pressure. Even though pricing has slid lower and cap rates have risen, it should remain resilient in the coming quarters. A deep dive into a uniquely positioned subsector, Arbor’s Small Multifamily Investment Trends Report Q1 2023, developed in partnership with Chandan Economics, analyzes the competing headwinds and tailwinds influencing investment performance.

The small multifamily sub-sector ended 2022 on a high note with originations falling just behind 2021’s peak. As economic storm clouds continue circling, small multifamily appears fortified from any reverberations that may result.

With investors now seeking inflation protection, the small multifamily sector continues to see gains. Arbor’s new quarterly Small Multifamily Investment Trends Report, published in partnership with Chandan Economics, sheds light on key trends, including firm cap rates, climbing valuations, and elevated originations, despite tightening underwriting standards.