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How Big is Small Cap Multifamily?


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Ivan Kaufman explains how more than one in ten of all U.S. households live in a rental property between 5 and 50 apartments, showing the large growth of small cap multifamily housing.

Published in: Real Estate
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How Big is Small Cap Multifamily?

  1. 1. HOW BIG IS SMALL CAP MULTIFAMILY? 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 More than half of all multifamily properties fall into the small-cap segment and more than one in ten of all U.S. households live in a rental property with between 5 and 50 apartments. Large-cap inventory grew by 18.0% over the 10-year period ending 2014, compared with 15.2% for medium-cap properties and just 8.5% for small-cap. However, between 2012 and 2014, the number of apartments in small-cap properties accelerated, increasing by 4.6%, and outpacing development for mid-cap (2.0%) and large-cap (2.3%) properties. Multifamily Housing Inventory 53% 5-19 Units 20%20-49 Units 27% 50+ Units See the full report on ALEX Chatter here: Rental Apartment Inventory Growth: 2010 - 2014 5-19 Units 20-49 Units 50+ Units 2010-2012 2012-2014 0.0% 1.5% 3.0% 4.5% 6.0%