Arbor’s Top Articles of 2022: A Banner Year for Multifamily
After taking a pause during the peak of the COVID-19 pandemic, the U.S. multifamily market experienced a banner year in 2022.
Demand was driven by renters seeking affordability amid rapidly rising home prices, rising mortgage rates, and limited inventory. Multifamily rents skyrocketed to new highs, and vacancy rates remained near historic lows. However, sales volume and new construction had not yet recovered to pre-pandemic levels by year-end.
Single-family rentals (SFR) also continued to thrive, driven by the same factors that propelled multifamily to new highs. Would-be homeowners priced out of the housing market flocked to the sector, seeking more space and affordability.
Throughout the year, Arbor continued to provide unique research and insights into our markets. Here’s a look at our top research articles from 2022, in case you missed them. And don’t forget to check out our top posts from last year: 2021.
What’s Driving the SFR Boom?
February 24, 2022 | By Chandan Economics
“Family-forming Millennials seeking more space, aging Baby Boomers increasingly less likely to move to retirement homes, and Gen-Zers with a greater appreciation of suburban lifestyles, are all expected to grow fuel the demand for SFR going forward.”
Three Top-of-Mind Topics for the Multifamily Industry in 2022
March 1, 2022 | By Omar Eltorai
“At the Mortgage Bankers Association’s 2022 Commercial/Multifamily Finance Convention and Expo in San Diego, CA, in mid-February, the following three topics were discussed by presenters and attendees and reflect what’s top-of-mind for the industry.”
Top U.S. Multifamily Rent Growth Markets — Q1 2022
May 13, 2022 | By Matt Maison
“The U.S. multifamily market followed last year’s record-setting performance with another strong showing in the first quarter of 2022. As has been the case over the last two years, Sunbelt markets stood out among the nation’s top performers.”
Strong Demand Readies Multifamily for Monetary Tightening
May 31, 2022 | By Chandan Economics
“All sectors of the economy will be impacted during the tightening cycle, including the rental housing sector. However, the sector is well-positioned to absorb much of the shock.”
Market Shifts Fuel Rental Demand
June 22, 2022 | By Thomas Hallissey
“Housing demand is inflated across the country, but it is particularly high in many Sun Belt cities. In fact, nine U.S. markets saw a 40% or more increase in demand.”
Fannie Mae and Freddie Mac Expand Mission to Deliver Liquidity, Stability, and Affordability
July 14, 2022 | By Thomas Hallissey
“In recent updates to their Duty to Serve Underserved Markets Plans, the agencies committed to enhancing the stability and affordability of challenged markets by providing greater liquidity over the next three years.”
Single-Family Rental Investment Snapshot — Q2 2022
September 1, 2022 | By Matt Maison
“SFRs are uniquely capable of offsetting the effects of inflation through annual rent renewals, and the sector remains insulated from a potential impending recession.”
FHA Allows More Frequent Surplus Cash Distributions
September 21, 2022 | By Thomas Hallissey
“This change, coupled with lower overall interest rates, higher LTV thresholds, and lower debt service coverage ratio requirements, makes a HUD-insured mortgage a more competitive play across the board for multifamily investors.”
U.S. Multifamily Market Snapshot — Q3 2022
November 8, 2022 | By Matt Maison
“Rent growth remained high, although lower than the levels seen over the past year. Investment activity also remained strong, as cap rates continued to compress.”
The LIBOR/SOFR Transition: What Multifamily Borrowers Need to Know
December 1, 2022 | By Thomas Hallissey
“Although the financial community is expecting a smooth transition, there are notable differences between the two rates that will influence multifamily lending.”
Interested in the multifamily real estate investment market? Contact Arbor today to learn about our array of multifamily and single-family rental financing options. Find all of our market research in our articles section.