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.
The U.S. multifamily market posted strong results to end 2019, with the fourth quarter seeing 3.7% year-over-year rent growth.
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The JCHS 2020 report underscores the national affordable housing crisis. It points to growing numbers of renters with high incomes as well as those who are cost-burdened.
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.
Lending Volumes Rise Amid Firming 2020 Outlook Year-end 2019 estimates of new multifamily lending volume on loans with original balances between $1 million and $7.5 million jumped to $59.2 billion, the highest level of activity in Chandan Economics’ post-crisis tracking. A lack of affordable housing supply, attractive borrowing rates and the pace at which rates have fallen have all propelled small multifamily lending volumes higher. Download the full report for key insights on the sector, including: Lending Volume Cap Rates & Spreads Interest Rates Leverage & Debt Yields
Over the course of the decade, the multifamily real estate market emerged as a premier asset class. Demand was driven not only by the shifting demographics, but also housing affordability issues surrounding escalating prices, limited supply and stagnant wage growth. See our breakdown of the decade’s top-performing multifamily markets.
The natural apartment filtering process of new supply declining in quality and value as it ages has provided low-income renters with access to more affordable housing options. The Great Recession, however, caused a break in the filtering pattern, leaving a shortage of workforce housing supply during this recovery.
Arbor’s nationwide experience and expertise allow us to customize multifamily financing wherever your portfolio takes you.
Simpsonville,
SC
Fannie Mae DUS
|
$10M+
Portland,
OR
Freddie Mac SBL
|
$1-5M
Dallas,
TX
Freddie Mac SBL
|
$1-5M
Sherman,
TX
Fannie Mae DUS
|
$5-10M
Atlanta,
GA
Fannie Mae DUS
|
$5-10M
Horseshoe Bay,
TX
Fannie Mae Small Loan
|
$1-5M
Wichita,
KS
Fannie Mae Small Loan
|
$1-5M
Arlington,
TX
Freddie Mac SBL
|
$1-5M
Dallas,
TX
Freddie Mac SBL
|
$1-5M
