Small asset multifamily's affordable profile has allowed the asset class to cater to families. However, deeper analysis uncovers its success in capturing single renter demand.

1. Access the Industry’s Only Multifamily Small Balance
Research and Insights at arbor.com/blog.
BY ARBOR
Source: arbor.com/blog/renters-families-small-asset-demand
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.
All data is sourced from the American Community Survey (ACS), unless otherwise stated.
ACS statistics are sample-based estimates of the compositional profile of the total
population in the given year of data collection, and include a margin of error.
Renter Household Type Distributional Change: 2014-16
Distributional Shift in Basis Points
Source: Chandan Economics, American Community Survey, 2016
Distributional Shift towards Single Renters and Families without Children
• Small asset properties displayed a shift away from families with children, whose
shares went down by 121 basis points (bps).
• Small asset single renters and families without children showed overall share gains
close to 50 bps.
• These patterns are similar across the rental market to varying degrees.
50
0
-50
-100
-150
Families with Children
Families without
Children
Single Renters
Other Non-Family
Households
Single-Family
Rentals
Small Asset
(5-49 Units)
Large Asset
(50 or More Units)
Families Drawn to Smaller Multifamily Properties
• Single renters living alone and families with children comprised 70% of all
households in small asset properties.
• Families with children represented 45% of households in single-family home rentals.
• Single renters comprised 60% of large assets, while families with children registered
15% market share.
Household Distribution by Household Type: 2016
Families with Children
Families without
Children
Single Renters
Other Non-Family
Households
Single-Family
Rentals
Source: Chandan Economics, American Community Survey, 2016
60%
40%
20%
0%
Small Asset
(5-49 Units)
Large Asset
(50 or More Units)
Families with
Children Dominate
Single-Family Rental
Demand, Single
Renters on the Rise
in Apartments
Arbor Realty Trust
Small asset multifamily’s affordable profile has allowed the asset class to cater to
families. However, deeper analysis uncovers its success in capturing single renter
demand.