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Ivan kaufman: Where are the Fastest Growing Markets for Small Multifamily Assets


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Chandan Economics answers the questions of where America’s small apartment properties (5 to 49 units) are located and which markets are growing the fastest. The data presented here is the first-ever assessment of the geographic distribution of the small asset apartment inventory.

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Ivan kaufman: Where are the Fastest Growing Markets for Small Multifamily Assets

  1. 1. WHAT ARE THE FASTEST GROWING MARKETS FOR 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: 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 Miami Portland Minneapolis Tampa WashingtonDC Phoenix Dallas NewYork Denver 0% 1.5% 3% 4.5% 6% Seattle Houston Denver Atlanta Dallas Miami SanDiego WashingtonDC Detroit Minneapolis 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% NewYork LosAngeles Dallas Chicago Houston Washington Miami Atlanta SanFrancisco Boston Seattle Phoenix SanDiego Philadelphia Denver Detroit Minneapolis Tampa Portland Baltimore