The document summarizes data on the fastest growing multifamily markets for small properties between 2014-2015. It finds that the top 5 largest metro areas (MSAs) accounted for only 18% of growth, lower than their 25% share of existing small property inventory. Among large cities, Los Angeles and Chicago grew faster than average while New York and Washington D.C. grew slower. Growth was more widespread among smaller metro areas, typically non-coastal cities that include state capitals and college towns.

1. FASTEST GROWING MULTIFAMILY
MARKETS FOR SMALL PROPERTIES
The Top 5 MSAs
accounted for only an
18% share of multifamily
growth, which was lower
than their overall share of
25% of the US small asset
inventory.
Among the traditional
gateway markets, Los
Angeles and Chicago grew
faster than the US average
growth rate, while New
York and DC showed
significantly slower growth.
Growth across the smaller
metro areas was spread
over a collection of
secondary markets,
typically non-coastal cities,
and include state capitals
and university towns.
Distribution of Inventory Addition Across Metro Areas
Top 5 Metros
Top 6-20 Metros
Top 21-50 Metros
New York, Los Angeles, Chicago, Dallas and Houston
Miami, Washington DC, Atlanta, San Francisco,
Boston, Seattle, Phoenix, Philadelphia, San Diego,
Denver, Detroit, Orlando, Tampa, Minneapolis and
Riverside
Austin, Baltimore, Las Vegas, San Antonio, Charlotte,
Portland, Columbus, Cincinnati, Indianopolis,
Nashville, Sacramento, St. Louis, Kansas City, Virginia
Beach, San Jose, Milwaukee, Cleveland, Pittsburg,
Jacksonville, Providence, Raleigh, Memphis,
Richmond, Louisville, Omaha, Hartford,
Birmingham, Salt Lake City and Madison
Distribution of Small Asset Inventory Growth: 2014-2015
Top 5 MSAs
Top 6-20 MSAs
Top 21-50 MSAs
Balance US
18%
36.1%
15.6%
30.3%
Fastest Growing Metros – Large and Small
-5%
0%
5%
10%
15%
20%
Orlando
Atlanta
Miami
Seattle
Riverside
Chicago
Minneapolis
Philadelphia
Denver
LosAngeles
Houston
WashingtonDC
Phoenix
NewYork
SanDiego
SanFrancisco
Dallas
Boston
Detroit
Tampa
Annual Growth Rate, Top 20 MSAs by Size
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
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