Small apartment assets — think 5 to 50 units, secured by $1MM to $7MM loans — play a critical role in U.S. housing. They are home to roughly one-third of all renters, and nearly 80 percent of lower-income renters. Based on a recent webinar from Arbor Realty Trust, Inc. and Freddie Mac, this presentation explores what you need to know to strategically grow your portfolio … Continue reading Leveraging Small Multifamily Loans in 2017: How to Growth Your Multifamily Investment Portfolio and Maximize Returns
The multifamily bridge loan space has become an increasingly popular lending sector as the current multifamily cycle has progressed. This is largely due to the rise of the value-add investment strategy. Strategic multifamily investors have benefitted greatly from the prevalence of older, mismanaged apartment inventory that’s suitable for physical improvements and operational overhauls. Nearly a quarter of 2014’s $42B transaction volume in the top six … Continue reading Bridge Market Grows More Liquid, Competitive
Multifamily Development Year-End 2016 | Arbor Year-end data released by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development on new residential construction, including data for multifamily buildings (classified as structures with five or more units), showed that multifamily development continued its strong run during 2016. Multifamily Building Permits Authorizations of privately-owned residential housing units in the United States in buildings with five … Continue reading Multifamily Building Permits
Rents in the United States have been rising faster than incomes for several years, demanding a larger share of household budgets. In fact, nearly one-third of American renter households contribute 50 percent or more of income towards rent. Are Small Asset Rentals Less ‘Severe’ on Renter Budgets? Following the definition used by the Harvard Joint Center for Housing Studies (JCHS) in their recently released 2016 annual … Continue reading How Big is the Rent Affordability Problem?
As we enter the fall buying season, it’s useful to look at pricing in major multifamily markets through the first half of the year. Not only in the priciest markets, but also in markets that may represent higher yield opportunities. Using transaction data compiled by Real Capital Analytics, we calculated the average sale price in the top 50 markets in the U.S. — specifically, the weighted average … Continue reading A Look at the Most and Least Expensive Multifamily Investment Markets
In this closer look at Millennial renters, we find they are well-represented in small, low-amenity properties. Developers and investors typically think of Millennial renters as determined to live in large, high-rise properties in urban cores. This new generation of renters prioritizes walkability and access to both in-building and local amenities. While this characterization may be true of many young renters, a closer look at the … Continue reading Millennial Renters are Essential to Small Property Apartment Demand
Education is arguably the strongest predictor of present and future levels of American workers’ income. As a result, there is a correlation between education attainment and the size of a building a renter is likely to call home. It should come as no surprise that individuals with advanced degrees are typically employed in better paying jobs that require higher skills. As noted in our post on the … Continue reading How Does Education Attainment Impact Where People Rent?
Married households and families are well-represented in small property apartments. Reflecting that skew to larger households, smaller properties account for a relatively smaller share of single renters when compared to large buildings. How Many Single Renters in Small and Large Properties? https://docs.google.com/spreadsheets/d/1xprlKBpox0GqVOfRgqeMq-QPTPBkJWmC15Gi_fGGsxk/pubchart?oid=1951124936&format=interactive As shown in the chart above, about 45 percent of all units in small properties are rented by individuals living alone, split equally … Continue reading Not the Bachelor Pad: Age and Income Profiles of Single Renters in Small Apartment Properties