Differences in Identifying Units in Small Multifamily Properties

The small multifamily property sector is defined as those properties with between 5-50 units. It is a sector that has long been a focus for affordable housing because it is generally regarded as having more affordable units. For example, according to CoStar, as of fourth quarter 2021, the average asking rent for a unit in an existing small multifamily property was $1,250, somewhat less expensive than the average $1,550 for a unit in a large, 50+-unit multifamily property. Therefore, it is useful to ascertain how much of this stock exists now and how much new supply is underway to determine the future of this important affordable segment of multifamily rental housing.

Read the April 2022 Market Commentary