CoreLogic just took a look at how size and mortgage financing vary in multi-family properties. Here are its findings:

  • There are +600,000 multi-family properties with at least 5 apartment units.
  • 70% of these 600,000 multi-family properties have less than 25 apartments.
  • 85% of the owners of multi-family properties own 5-49 apartment units.
  • 15% of owners of multi-family properties own 50 apartment units.
  • 16% of owners of multi-family properties own 84% of multi-family apartment units.

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CoreLogic found some 300,000 different owners of multi-family properties in its research.

  • On average, owners of multi-family properties own two properties.
  • Small properties tend to be owned by investors with 1-2 properties.
  • 85% of all owners own no more than 50 apartment units and only 16% of all rental apartments.
  • 15% of all owners (investor) own more than 50 units and they own 84% of all rental units.
  • 1% of all owners (investors) own 1,000 apartment units and own one third of all apartment rental units.

Mortgage financing for multi-family properties varies by size:

  • The smallest (5 apartment units or less) and the largest (1,000+ apartment units) have the least need for mortgage financing.
  • Mortgage financing is most in demand by owners of properties with 100-500 apartment units.
  • Owners with less than 25 units tend to obtain conventional loans from banks or private investors.
  • Owners of medium sized properties (100-500 apartment units) tend to have access for financing from secondary markets that may both increase access to financing and reduce costs of financing.
  • Owners of properties with 1,000+ apartment units tend to be financed by large investment or management firms that have cheaper alternatives for financing loans.

CoreLogic found that multi-family property size and mortgage financing need looked like this in Q3 2019:

  • 5-9 units – 53%
  • 10-99 units – 61%
  • 100-199 units – 64.5%
  • 200-299 units – 66.5%
  • 300-399 units – 67%
  • 400-499 units – 64%
  • 500-599 units – 63.5%
  • 600-699 units – 60%
  • 700-799 units – 57%
  • 1,000+ units – 55%

Thanks to CoreLogic’s Chief Economist Dr. Frank Nothaft for source data.

Also read: Multifamily Occupancy /climbs to Highest Levels Since 2000, Rents and Units Growing in These Multi-Family Markets, Podcast: 12 Signs You Have an Entrepreneurial Mindset