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.

Asset Valuations Edge Higher as Credit Conditions Tighten
Arbor’s Small Multifamily Investment Trends Report Q1 2025, developed in partnership with Chandan Economics, examines a key commercial real estate sector that consistently shows stability amid ongoing economic volatility. Small multifamily continues to show positive trends in key indicators, such as asset valuations, originations volume, and construction, signaling that the sector should continue to overpower headwinds as it builds on its ongoing momentum.
Key Findings
- Small multifamily valuations have started rising again, growing modestly in the third and fourth quarters of 2024.
- Origination volumes ticked up 5.0% despite interest rate headwinds.
- The structural need for workforce housing continues to support the sector’s demand.