Small balance multifamily loans typically range between $1 million and $5 million. Properties with 5 to 19 units are considered small-cap, 20 to 50 units are mid-cap, and over 50 units are large-cap. Over half of all multifamily properties fall into the small-cap segment of 5 to 19 units, and more than one in ten U.S. households live in a rental with 5 to 50 units. Between 2010 and 2014, large-cap properties grew the most at 18%, while small-cap grew the least at 8.5%; however, from 2012 to 2014 small-cap properties accelerated and grew the most at 4.6%.

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:
www.arborloanexpress.com/chatter
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%