From California to Maui, the frequency and scope of wildfire events are rising, causing insurance markets and public agencies to reevaluate property in areas at risk for catastrophic damage. As a result, rental housing providers are seeing greater limitations to coverage, higher premium prices, and, in some cases, a total absence of viable private insurance — a trend detailed in the NMHC 2023 State of Multifamily Risk Survey and Report. This troubling new trend has placed many rental housing operators in a bind where they must simultaneously contend with the declining availability and affordability of insurance options.
Research Reports
Small Multifamily Investment Trends
from Arbor & Chandan Economics
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Our Small Multifamily Investment Trends quarterly reports
are in-depth assessments of the key factors influencing small multifamily financing
and investment performance. Four times a year, this series identifies the
latest trends in underwriting, financing, cap rates, valuation, and more.
Small Multifamily Archives
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Higher Interest Rates Drive Cap Rates Up as Cash Flows Remain Robust
- 08/01/2023
The small multifamily subsector, strengthened by sound structural fundamentals, is well-positioned to face distress due to interest rate pressure. Even though pricing has slid lower and cap rates have risen, it should remain resilient in the coming quarters.
- 05/08/2023
Small multifamily originations reached $80.7 billion in 2022, the highest annual total after 2021’s record high.
- 01/30/2023
After a record-breaking 2021, financial turbulence has become the norm in recent months, and forecasts indicate we can expect more rocky economic conditions ahead.
- 11/02/2022
Storm clouds continue to gather for the U.S. economy and advanced economies around the world. After the U.S. gross domestic product shrank at a 1.6% seasonally adjusted annualized rate in the first quarter of 2022 and current forecasts anticipate another contraction in the second quarter, talks of an impending recession
- 08/01/2022
The economy shrank at a 1.4% seasonally adjusted annualized rate in the first quarter of 2022, according to the U.S. Bureau of Economic Analysis. The contraction comes amid elevated energy costs and growing recessionary concerns.
- 04/29/2022