As was the case during 2024, the top rent growth markets through the first half of 2025 represented several regions, all with varying strengths and characteristics.
The U.S. multifamily market stood on the cusp of a new cycle at the halfway point of 2025, as demand continued to be driven by favorable demographic trends and a structural need for housing.
Small multifamily valuations realized positive year-over-year growth in the second quarter of 2025, demonstrating the sector’s ongoing resilience in an unsettled economic environment. Steady rent growth, improving operating expense ratios, and stable cap rates helped move price growth into positive territory.
Albany, NY, and many other affordable mid-sized metropolitan statistical areas (MSAs) outpaced the national rent growth average for single-family rental (SFR) properties in the first half of 2025, according to an analysis of Zillow’s Observed Rent Index, which tracks the 100 largest markets in the U.S.
Driven by high construction costs, land constraints, and rental affordability, developers are increasingly prioritizing smaller units in higher-density multifamily properties. Utilizing data from the U.S. Census Bureau’s annual Survey of Construction, the research teams at Chandan Economics and Arbor Realty Trust have analyzed how the characteristics of new multifamily properties continue to evolve.
In today’s constantly evolving market environment, partnering with a lender that can balance prioritizing speed of execution with tailored solutions makes all the difference in securing the financing you need. Arbor’s experience, expertise, and innovation, combined with our willingness to understand each deal and work to make it successful, set us apart from other multifamily lenders. In our more than three decades of closing deals, we’ve found that having these 10 items on hand at the beginning of your borrowing journey helps prevent roadblocks and streamlines the entire financing process.
The single-family rental (SFR) sector continued showing strength in several key areas in the second quarter of 2025, even as residential housing market growth moderated.
The U.S. housing market reflects a patchwork of local needs, preferences, and geographies, creating distinct storylines. Across the country, many significant shifts have occurred over the last five years, an analysis of U.S. Census Bureau data shows. More expensive housing markets tend to support higher percentages of rental households, and in fast-growing metros, rentals have become a highly effective and flexible way to house new residents.
Arbor has been a relationship-first, multifamily direct lender and loan servicer since 1993. We excel at developing long-term connections and collaborating with borrowers to tailor custom loan solutions that consistently deliver results for our clients.
For over 30 years, Uniondale, NY-based Arbor Realty Trust, Inc. (NYSE: ABR), has been extending financing to borrowers who share our commitment to enhancing the U.S. rental housing supply. A nationwide real estate investment trust and direct lender, we specialize in loan origination and servicing for multifamily, single-family rental (SFR) financing, and other diverse commercial real estate assets.
Top 10 lender by volume for more than a decade and a repeat Top Small Loans Lender.
Approved Freddie Mac Seller/Servicer and a Top Small Balance Loan Lender.
Shorter-term, one-stop shop financing for multifamily and commercial assets positioned for permanent take-out.
HUD-approved MAP, LIHTC & Lean Lender for multifamily, seniors and healthcare.
Arbor provides long-term Fannie Mae and HUD-insured financing solutions for the creation and preservation of affordable housing.
Bridge, Permanent and Build-to-Rent loan solutions through Arbor’s proprietary platform.
Solutions used in conjunction with new or existing commercial loan financing to help in completing all the components of the capital stack.
Efficient and transparent online loan origination and processing.
Experienced servicing division that oversees a multibillion-dollar portfolio and is rated by S&P and Fitch for commercial and special servicing.
