Arbor’s Top Articles of 2024: Multifamily Investment Opportunities Emerge
The U.S. multifamily market held steady in a more normalized cycle during 2024, following a rapid recovery from the pandemic-related economic contraction. Rental demand remained strong, driven by the ongoing nationwide housing shortage and robust wage growth, as younger generations continued to embrace lifestyle renting.
Investment opportunities emerged for well-positioned investors as interest rates fell and financing conditions became more favorable. As of the end of September, multifamily sales volume had increased 40% year over year, while loan originations were up 56%. Additionally, the high levels of new construction observed over the past year have appeared to peak.
It was also a banner year for the single-family rental (SFR) sector, as its structural strengths provided a solid foundation to counterbalance evolving economic conditions. Occupancy rates were stable, and rent growth remained healthy. Construction momentum also gained steam, with build-to-rent (BTR) starts hitting record highs during the year.
Affordability remains an issue nationwide and sits at a crossroads. The Low-Income Housing Tax Credit program remains pivotal in helping to close the affordability gap for renters, while the incoming administration has stated intentions on a market-based approach, including expanding the Housing Choice Voucher program.
Here’s a look at Arbor’s top articles from 2024, in case you missed them. And don’t forget to check out our top posts from last year: Arbor’s Top Articles of 2023: The Multifamily Market Holds Steady.
—–
Why Build-to-Rent Loans Have Strong Upside Potential
January 3, 2024 | By Dan Peltier
“A nationwide housing shortage of rental homes, coupled with the rising costs of homeownership, has fueled the popularity of high-quality, affordable SFR/BTR homes.”
The Size and Scope of the Single-Family Rental Sector
January 11, 2024 | By Chandan Economics
“The SFR sector has seen intense growth in recent years, attracting new investment capital and developing new business models, such as purpose-built communities.”
Harvard Housing Study: State of the Rental Housing Industry
February 9, 2024 | By Matt Maison
“Younger generations of higher-income lifestyle renters will continue to drive demand, although the need for more significant investment in affordable housing and rental assistance is greater than ever.”
CRE Solutions for a Greener Planet Build Momentum
April 23, 2024 | By Thomas Hallissey
“As the need for sustainability becomes increasingly apparent, lawmakers and lenders have advanced programs and policies that show ‘going green’ is a win-win.”
Video: Growing LGBTQIA+ Visibility in the CRE Industry
June 28, 2024 | By Dan Peltier
“Enhancing visibility in the workplace includes supporting colleagues who understand the challenges many renters face, ultimately creating a more inclusive industry and society.”
Multifamily is Well-Positioned for Short- and Long-Term Growth
July 11, 2024 | By Chandan Economics
“With the macroeconomy maintaining its underlying strength and a handful of rate cuts expected by the Fed within the next 18 months, green shoots of optimism within the multifamily sector are multiplying.”
Affordable Housing Supports Positive Physical and Mental Health
August 12, 2024 | By Thomas Hallissey
“Limited affordable housing options not only increase the rent burdens of low-income tenants but disrupt physical and mental health, underscoring the need for more affordable housing units nationwide.”
Could Build-to-Rent Be a Solution to Housing’s ‘Missing Middle’ Problem?
September 6, 2024 | By Tres Seippel
“Much of its existing stock was built in the 1920s and 1930s before single-family zoning and building requirements for mid- to high-rise apartment buildings made new construction difficult or even illegal in many localities.”
U.S. Multifamily Market Snapshot — November 2024
November 15, 2024 | By Matt Maison
“Rental demand remained strong, driven by the continued nationwide housing shortage and strong wage growth, while the high levels of new construction seen over the last two years appears to have peaked.”
Investors Upbeat on Multifamily as Rate Cuts Stimulate Deal Activity
December 9, 2024 | By Chandan Economics
“As pandemic-related structural changes settle into place, cyclical economic trends, such as interest rates, demand, and construction levels, are now the key drivers to watch.”
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 or view our multifamily articles and research reports.