Arbor’s Top Articles of 2023: The Multifamily Market Holds Steady
Following a banner year in 2022, the U.S. multifamily market held steady during 2023.
Rent growth nationwide slowed from the skyrocketing highs of the previous two years, although it remained positive, while vacancy rates held near historical lows. Unlike the previous two years, when Sun Belt markets led the list, rent growth in 2023 was distributed throughout a wide range of markets.
Demand remained high, and net absorption surpassed new construction as the rapid pace of development activity began to show signs of slowing. Investment activity slowed during the year and the gap between buyers and sellers remained wide, although signs of distress were limited.
Although investment volume for single-family rentals declined in 2023, the slowdown was driven by buyers’ need for higher property yields rather than lack of incentive from market hardship. Built-to-rent remained a bright spot in the sector, as high mortgage costs led to priced-out would-be homebuyers choosing to live in these communities.
Efforts to address affordable housing continued at the state and federal level, including the expansion of the Housing Choice Voucher (HCV) and Low-Income Housing Tax Credit (LIHTC) programs. Although more work is needed, soaring construction costs have widened developer funding gaps.
Arbor provided research and insights into our markets throughout the year. Here’s a look at our top Arbor research articles from 2023, in case you missed them. And don’t forget to check out our top posts from last year: Arbor’s Top Articles of 2022: A Banner Year for Multifamily.
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Multifamily Construction Starts Hit 36-Year High in 2022
February 17, 2023 | By Chandan Economics
“Even as the economy’s momentum slowed in 2022, multifamily construction continued to ramp up, reaching highs not seen since the 1980s.”
Aging Baby Boomers Reshape the Housing Market
March 21, 2023 | By Chandan Economics
“Between 2007 and 2021, the number of senior (65+ years old) households grew by 51.2%, increasing from 22.7 million to 34.3 million. Meanwhile, the number of non-senior households rose by a tepid 4.4%.”
Seven Facts about FHA Multifamily Loans for Affordable Housing
May 18, 2023 | By Dan Peltier
“HUD and FHA insurance programs make capital available to investors for the rehabilitation, development, and refinancing of all apartment properties to make affordable and low-income housing more accessible.”
Generation Renter: Why the Multifamily Pipeline is So Promising
July 25, 2023 | By Chandan Economics
“Demographic analysis can be used to identify the amount of people who could potentially be renters. Even as population growth has slowed, the next group of young people to become adults is larger than ever.”
The Top Five Emerging Metros for Retiree Relocation
August 24, 2023 | By Chandan Economics
“As Baby Boomers reach retirement age, their evolving geographic preferences are strengthening housing markets and local economies in new locations, which feature attractive climates, relative affordability, and ample outdoor activities.”
Fannie Mae Small Loans Cap Raised to $9 Million
August 30, 2023 | By Dan Peltier
“Multifamily borrowers and lenders have praised the change to the Fannie Mae Small Loans program, which will encourage greater investment in a rapidly growing sector where demand remains high despite market volatility.”
FHA Allows More Frequent Surplus Cash Distributions
September 21, 2023 | By Thomas Hallissey
“Distributions can now be taken as often as once per month, updated from two times per accounting year historically.”
U.S. Multifamily Market Snapshot — Q3 2023
November 8, 2023 | By Matt Maison
“The U.S. multifamily market held steady during the third quarter of 2023, as high mortgage rates and a lack of inventory in the housing market continued to drive rental demand.”
Top U.S. Multifamily Rent Growth Markets — Q3 2023
November 14, 2023 | By Matt Maison
“Multifamily rent growth in the U.S. continued to be distributed throughout a variety of markets, which contrasted with the previous two years when Sun Belt markets dominated the list.”
eCore23 Fireside Chat: Arbor and RXR CEOs Discuss Business, Politics, and Multifamily
December 4, 2023 | By Thomas Hallissey
“Arbor Chairman and CEO Ivan Kaufman and RXR Chairman and CEO Scott Rechler hosted an exclusive, hour-long Fireside Chat before an intimate group of multifamily leaders, where Kaufman emerged as the optimist.”
Interested in the multifamily real estate investment market? Contact Arbor today to learn about our array of multifamily, single-family rental, and affordable housing financing options and view our other market research and multifamily articles in our research section.