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.

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:
arborloanexpress.com/spotlight-top-markets-small-asset-multifamily/
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