Senior renters are increasingly choosing multifamily housing, with more than half now living in these rental properties, according to new data from the U.S. Census Bureau’s American Community Survey. Where they live — both by property type and by metropolitan area — provides insight into how housing preferences, local market conditions, and migration patterns shape rental housing demand.
Cap Rates Climb Again as Originations Begin Rebounding
The small multifamily outlook continues to brighten as more signs indicate a normalization has already begun. In the second quarter, originations activity and borrowing conditions improved as completions sat at a five-decade high, Arbor’s Small Multifamily Investment Trends Report Q3 2024, developed in partnership with Chandan Economics, shows. While the subsector’s fundamentals are trending up, it still has room for growth when interest rate relief arrives.
Key Findings:
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Small multifamily originations were on pace for a 7.9% annual increase in 2024.
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Cap rates reversed a first-quarter decline, rising to 6.1%.
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Credit conditions remained conservative as debt yields rose to 9.9%.