As we move into 2023, all eyes will once again be on the Federal Reserve, the job market, and the housing market. Investors who are in a good position going into the correction will be able to take advantage of opportunities.

Amid economic headwinds, SFR is well-positioned as a primary alternative for would-be homebuyers priced out of ownership in today’s high-interest-rate housing market.

The small multifamily sub-sector remains in a favorable position to withstand macroeconomic instability.

Arbor’s latest Affordable Housing Trends Report, produced in partnership with Chandan Economics, examines the affordable housing market’s growth trajectory in a challenging economic climate.

Multifamily rent growth remained strong in the San Antonio market during the third quarter of 2022, although began showing deceleration from the most recent record highs measured earlier in the year. Barriers to homeownership continued to drive rental demand, as vacancy rates reached all-time lows.

The U.S. multifamily market continued to expand during the third quarter of 2022, although at a more modest pace. Additionally, some new areas have shown up on the list of top rent growth markets.

The U.S. multifamily market continued to expand during the third quarter of 2022, although at a more modest pace.

Small multifamily prices continued to press higher at a double-digit annual rate in the second quarter of 2022 and cap rates sank to new all-time lows.

On balance, the specter of potential market-limiting legislation cannot be ignored. At the same time, the sector is well-positioned to see continued growth in the second half of 2022.

The U.S. multifamily market posted a historic showing in the second quarter of 2022. Rent and price growth remained at all-time highs, while vacancy and cap rates improved to the lowest levels since the onset of the pandemic. Among the nation’s top markets, the Sunbelt region continued to shine.