A closer look at householder age indicates the steady graying of small asset apartment demand.

1. Access the Industry’s Only Multifamily Small Balance
Research and Insights at arbor.com/blog.
BY ARBOR
Source: arbor.com/blog/older-households-small-asset-demand-millennials
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.
Household Type by Householder Age Distributional Change: 2014-16
Distributional Shift in Basis Points
Source: Chandan Economics, American Community Survey, 2016
Small Asset Shift Toward Baby Boomers and Seniors
• Baby boomer and senior householders (60 years and over) gained a share of
146 basis points (bps).
• In comparison, this segment gained 124 bps in single-family rentals, and declined
75 bps in large asset multifamily.
• Gen X householder shares are lower across all asset classes, likely due to a shift
toward home ownership.
150
100
50
0
-50
-100
-150
Below 40 years
40-59 years
60 years and over
Single-Family
Rentals
Small Asset
(5-49 Units)
Large Asset
(50 or More Units)
Millennial Households Dominate Small Asset Demand
• The majority of households in small asset multifamily buildings were headed by
members of the millennial cohort.
• Millennials make up smaller shares in the larger apartment asset (37%) and
single-family rental categories (44%).
• Baby boomers and seniors comprise the biggest demand source for large asset
properties.
Households by Householder Age: 2016
Below 40 years
40-59 years
60 years and over
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)
Distribution within Asset Class
Older Households
Make Gains in Small
Asset Unit Demand,
Millennial
Households Form
the Largest Share
Arbor Realty Trust
A closer look at householder age indicates the steady graying of small asset apartment
demand.