The U.S. housing market reflects a patchwork of local needs, preferences, and geographies, creating distinct storylines. Across the country, many significant shifts have occurred over the last five years, an analysis of U.S. Census Bureau data shows. More expensive housing markets tend to support higher percentages of rental households, and in fast-growing metros, rentals have become a highly effective and flexible way to house new residents.

Los Angeles Remains a Top Destination for Small Balance Multifamily Investment
The L.A. market for small balance multifamily has been a standout throughout the current economic expansion. Cap rates have remained below national trends for both the rest of the small balance market and the average set by all multifamily properties. Despite higher risk appetites among borrowers, lenders remain cautious as loan-to-value ratios (LTVs) have moderated.
Looking ahead, a disciplined lending environment will reduce L.A. small balance multifamily’s sensitivity to any market corrections.
Produced in conjunction with Chandan Economics and tailored for the small multifamily investors, this report will explore recent changes in:
- Cap Rates & Spreads
- LTVs
- Debt Yields