Small multifamily lending activity rose during the first half of 2026. According to the latest Small Multifamily Investment Trends Report from Arbor Realty Trust and Chandan Economics, originations on loans with original balances between $1 million and $9 million reached an annualized pace of $71.6 billion through the second quarter. At this pace, originations are running 2.8% above the $69.6 billion total for 2025, placing small multifamily on pace for a third consecutive annual increase.

Small Multifamily Prices Grow as Investors Respond to Lower Costs of Capital
Small multifamily lending volume jumped to $57.8 billion on an annualized basis, the highest level of activity in Chandan Economics’ post-crisis model estimates.
At the same time, small multifamily prices grew 6.6% year over year, driving cap rates down to 5.8%. The small multifamily sector is benefiting from persistent demand growth. As long as risk-taking remains at an appropriate threshold, small multifamily is poised to maintain healthy performance.
Download the full report, “Q3 2019 Small Multifamily Investment Trends Report,” for key insights on the sector, including:
- Lending Volume
- Cap Rates & Spreads
- Interest Rates
- Leverage & Debt Yields