While significant income differences remain between owner and renter households, growth in income is the fastest among apartment renters. This bodes well for short-term multifamily operating fundamentals.
Adjusted estimates of 2018 lending volume of small balance loans jumped to $53.1 billion, the highest level of activity in Chandan Economics’ post-financial crisis estimates. Initial readings for the first quarter of 2019 totaled an annualized $48.7 billion. Here’s a quick look at the small balance multifamily finance and investment benchmarks for Q1 2019.
The top metros attracting Millennial renters from other states are typically medium-sized with relatively fast-growing economies.
Whether a period of economic weakness is years away or just around the corner, the small balance multifamily sector is projected to remain healthy in 2019. Read our Q1 2019 Small Balance Multifamily Investment Trends Report for insights on the market.
Those considering investment in the residential arena of commercial real estate, should consider single-family rentals (SFRs). Here are some reasons why.
While higher shares of young adults move into apartment buildings annually, moving rates for this age group are in decline, keeping with the broader national trend.
Small Balance Market Resiliency Comes into Focus to Start 2019 Ever since the Federal Reserve increased short-term interest rates in the waning days of 2018, the conversation has shifted from when will rates rise again to will the Fed have to lower rates? Markets currently peg the probability of at least one rate cut in 2019 at about even odds. However, this does not mean a downturn is imminent. By several measures, the economy is performing at its highest capacity of any point since before the financial crisis. Whether a period of economic weakness is years away or just around the corner, the small balance multifamily sector is projected to remain healthy. For more on the small balance multifamily sector, read Arbor Chatter’s “Q1 2019 Small Balance Multifamily Investment Trends Report.” Explore charts and insights, including: Lending Volume Cap Rates & Spreads Interest Rates Leverage & Debt Yields
As commercial real estate investors move further out on the yield spectrum, they are increasingly considering the single-family rental (SFR) asset class. Large portfolio transactions have made headlines in recent years, yet individual investors still own 80% of the SFR marketplace.
Arbor’s nationwide experience and expertise allow us to customize multifamily financing wherever your portfolio takes you.
Memphis,
TN
Fannie Mae DUS
|
$1-5M
Bronx,
NY
Freddie Mac SBL
|
$1-5M
Bronx,
NY
Freddie Mac SBL
|
$1-5M
Miami,
FL
Freddie Mac SBL
|
$10M+
Brooklyn,
NY
Freddie Mac SBL
|
$5-10M
Bronx,
NY
Freddie Mac SBL
|
$10M+
San Antonio,
TX
Fannie Mae DUS
|
$10M+
Leon Valley,
TX
Fannie Mae DUS
|
$5-10M
Hickory,
NC
Fannie Mae DUS
|
$10M+
