WHAT ARE THE FASTEST GROWING MARKETSFOR SMALL MULTIFAMILY ASSETS?

Small balance multifamily loans are typically between $1 million and $5 million. Chandan Economics

defines small-cap properties as 5 to 19 units, mid-cap properties as 20 to 50 units, and large-cap properties

as larger than 50 units. Both small-cap and mid-cap properties can fall into the small balance spectrum.

Source: American Community Survey; Chandan Economics

Avg Annual Growth Rate 2010-2014

See the full report on ALEX Chatter here: arborloanexpress.com/spotlight-top-markets-small-asset-multifamily/

Where are the Largest Markets for Small Apartment Buildings?

The small asset inventory is concentrated in the country’s largest metro areas.

The Top 20 metro areas accounted for slightly over half of the small asset inventory in 2014.

Geographic concentration was even higher for large asset units, where the Top 20 metro areas accounted for as much as 65 percent of the large asset inventory.

Which are the Fastest Growing Big Markets?

The largest metros are not necessarily the fastest growing ones in either the small asset or the large asset market in the post-crisis period. The fastest growing small asset markets are a mix of both Gateway and Secondary markets.

Top 10 Markets for Small Asset (5-49 unit) Growth

Top 10 Markets for Large Asset (50+ unit) Growth

0%

2%

4%

6%

8%

Houston

Miam

i

Portlan

d

Min

neap

olis

Tamp

a

Wash

ington

DC

Ph

oenix

Dallas

New

York

Denver

0%

1.5%

3%

4.5%

6%

Seattle

Houston

Denver

Atlan

ta

Dallas

Miam

i

San D

iego

Wash

ington

DC

Detroit

Min

neap

olis

Large Assets(50+ units)

Small Assets(5-49 units)

Top 20 Market Areas by Unit Stock

Small Assets(5-49 units)

Large Assets(50+ units)

0%

5%

10%

15%

20%

New

York

Los An

geles

Dallas

Ch

icago

Houston

Wash

ington

Miam

i

Atlan

ta

San Fran

cisco

Boston

Seattle

Ph

oenix

San D

iego

Ph

iladelp

hia

Denver

Detroit

Min

neap

olis

Tamp

a

Portlan

d

Baltim

ore