The multifamily industry is largely made up of small owners, but now we know just how fragmented the industry actually is.
To be exact, about 67 percent of the nation's rental properties are owned by households or individuals, according to the new 2012 Rental Housing Finance Survey, conducted by the Census Bureau and HUD. And about 70 percent of the buildings are managed day-to-day by the owner of the property or an unpaid agent, likely a family member.
The survey also found that about 19 percent of the nation's rental buildings were built prior to 1920, with 73 percent being acquired by its owners prior to 2005.
The survey, which polled a representative sample of 2,264 properties, also provides a more vivid picture about multifamily financing across the nation. Slightly more than half of two-to-four unit multifamily properties have a mortgage, while about 85 percent of 50-plus unit properties have one, as well.
Although they’re managed by a smaller group, 87 percent of multifamily property owners reportedly made repairs to their housing units in 2011, spending about $699 per unit. And another 69 percent reported making capital improvements, which cost an average $1,167 per unit.
Other notable findings include:
• 73 percent of all multifamily rentals are just one building while 4 percent have 20 or more buildings on the property.
• In multifamily rental properties with 50 or more units, 45 percent have 20 or more buildings.
• 77 percent provide parking.
For more details about multifamily financing, take a look at the survey here.