The small multifamily sector has been resilient throughout the pandemic and has bounced back as the broader industry recovers.

Through the second quarter of 2021, fundamentals for small multifamily properties continued to improve, boosting the outlook for the market.

Investor demand for small multifamily increased, as the share of refinancing activity settled at pre-crisis levels.

Average cap rates on small multifamily properties dropped to 5.2% in the second quarter, while average pricing rose 1.3%.

See Arbor’s latest small multifamily report for a deeper look at the market’s performance.