While the 2008 financial crisis prompted a cyclical shift in U.S. housing — impacting everything from home prices to who can qualify for a mortgage — an equally impactful demographic change was just taking shape. The unprecedented wave of Baby Boomers that began retiring would disrupt the balance of the housing market.

Reliability of Small Multifamily Tenant Base Fuels Recovery
Our quarterly report on the current and emerging small multifamily investment trends features data and research from Chandan Economics. The report reviews the state of the market, identifying trends in underwriting, financing, cap rates, valuation and more. In the report, you’ll learn how small multifamily properties differ from larger properties, and the forces driving their investment performance.
Key Findings:
- An analysis of work from home trends finds that small multifamily properties may be less affected than larger properties because fewer tenants can work remotely.
- Small multifamily cap rates held at 5.2% in the third quarter, effectively unchanged from last quarter.
- The refinancing share of originations rose as investors locked in rates ahead of potential monetary tightening and expected rate rise.
- Asset prices rose 2.9% from a year earlier and 7.7% over pre-pandemic highs.
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