Small Multifamily Investment Trends Report Q3 2022

Liquidity, Inflation Protection Draw Investors Even as Underwriting Standards Tighten With investors now seeking inflation protection, the small multifamily sector continues to see gains. Arbor’s new quarterly Small Multifamily Investment Trends Report, published in partnership with Chandan Economics, sheds light on key trends, including firm cap rates, climbing valuations, and elevated originations, despite tightening underwriting standards.   Key Findings: Small multifamily originations are on pace to hit $85.1 billion in 2022, sliding from 2021’s record high. Cap rates hold at 5.0%, despite rising benchmark interest rates. Underwriting standards tighten as LTVs fall and debt yields tick up. Complete the form to instantly access the full report!

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U.S. Metro Labor Markets Show Sizable Gains and Solid Growth

All of the top 50 metropolitan areas in the U.S. registered unemployment rate improvements during the 12 months ending in August 2022. Los Angeles led the country with the largest decline in its unemployment rate, shaving off 3.7 percentage points from one year ago. Riverside (-3.3%), Detroit (-3.2%), San Diego (-3.1%), and Sacramento (-2.8%) all followed closely behind with sizable declines.

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Florida Population Growth Steady Despite Ongoing Hurricane Threats

The increased frequency of major hurricanes brings into question whether robust in-migration patterns will hold in the face of growing climate risks. While there is a growing concern that the increase in extreme weather events could dampen housing demand in at-risk or effected areas, history displays a different pattern.

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Affordable Housing Trends Report Fall 2022

Arbor’s Affordable Housing Trends Report Fall 2022, developed in partnership with Chandan Economics, examines the affordable housing market’s growth trajectory in a challenging economic climate. It examines key programs, including the Low-Income Housing Tax Credit (LIHTC) and the Housing Choice Voucher (HCV), likely to influence the market’s performance in the coming year.

Affordable Housing Trends Report Fall 2022

Affordability Poses New Challenges to Low-Income Housing Market Arbor’s Affordable Housing Trends Report Fall 2022, developed in partnership with Chandan Economics, examines the affordable housing market’s growth trajectory in a challenging economic climate.   Key Findings: Rising construction costs have slowed new Affordable construction as financing gaps for Low-Income Housing Tax Credit (LIHTC) developers have widened. A sizeable expansion of the Housing Choice Voucher (HCV) program was removed from the Inflation Reduction Act of 2022, though the White House continues to call for increased funding in its annual budget resolutions. Nearly 90% of developers reported they will avoid markets with mandatory affordability requirements as local rent control measures are under consideration in five states. Complete the form to instantly access the full report!

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From the Ground Up: How Development Costs Shape the SFR Sector’s Geography

Single-family rental starts reached an all-time high in 2022. But with homebuilding prices climbing this year, curbing construction costs has become increasingly important. By utilizing strategies, such as market site selection and smaller property buildouts, SFR developers have identified efficiencies to better manage construction costs.

Current Reports

2022 Top Opportunities in Large Multifamily Investment Report

In an otherwise uneven economic environment, multifamily real estate and other investment classes adept at absorbing inflationary pressures have outperformed the rest. Within the surging multifamily sector, certain markets shined brightly this year. The 2022 Arbor Realty Trust Large Multifamily Opportunity Matrix highlights the top 50 U.S. metros for investment.

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From in-depth reports to impactful articles, Arbor is your source for exclusive content about key trends impacting investment within commercial real estate markets, including multifamily, single-family rentals, and affordable housing.

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