Even as rents retreated elsewhere, single-family rentals (SFR) have continued to outperform all other housing sub-types, exceeding the all-property type national average in 17 consecutive months through February 2024, according to Zillow’s Observed Rent Index (ZORI). Annual SFR rent growth has seen substantial gains in many metropolitan areas since national rent growth peaked in March 2022. In this deep dive, the Chandan Economics and Arbor Realty Trust research teams pinpoint the metropolitan areas where SFR rents are rising the fastest.
Research Reports
Small Multifamily Investment Trends
from Arbor & Chandan Economics
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Our Small Multifamily Investment Trends quarterly reports
are in-depth assessments of the key factors influencing small multifamily financing
and investment performance. Four times a year, this series identifies the
latest trends in underwriting, financing, cap rates, valuation, and more.
Small Multifamily Archives
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Cap Rates Push Higher as Underwriting Standards Stabilize
Higher Interest Rates Drive Cap Rates Up as Cash Flows Remain Robust
The small multifamily subsector, strengthened by sound structural fundamentals, is well-positioned to face distress due to interest rate pressure. Even though pricing has slid lower and cap rates have risen, it should remain resilient in the coming quarters.
Small multifamily originations reached $80.7 billion in 2022, the highest annual total after 2021’s record high.
After a record-breaking 2021, financial turbulence has become the norm in recent months, and forecasts indicate we can expect more rocky economic conditions ahead.
Storm clouds continue to gather for the U.S. economy and advanced economies around the world. After the U.S. gross domestic product shrank at a 1.6% seasonally adjusted annualized rate in the first quarter of 2022 and current forecasts anticipate another contraction in the second quarter, talks of an impending recession