All Articles

Despite a slow start to 2021, the U.S. multifamily market posted a record-breaking year. Rent growth was the highest since REIS began tracking data in 1980, as vacancy rates continued their downward trend. Investment sales also shattered previous records, while cap rates remained near historic lows and below those of other major property types.

The single-family rental sector (SFR) enjoyed its best year on record in 2021, as demographic and pandemic-related forces combined with growing investment enthusiasm. This report provides an in-depth look at the SFR market with exclusive data and analysis on its performance.

Even as the Omicron variant evades our collective vaccine protection and prompts recalibrated expectations for the new year, our economic sensitivity to the viral threat is markedly less than it was in spring 2020. A potential outcome is the pandemic will gradually fade into a highly contagious though comparatively manageable endemic through this upcoming year and beyond.

The initial year-end 2021 estimate of new multifamily lending volume on loans with original balances between $1 million and $7.5 million1 — including loans for apartment building sales and refinancing — surged to $85.4 billion. The estimate is a substantial step-up from previous 2021 annualized estimates, reflecting a sizable increase in originations at the end of the third quarter through the end of the year.

The general sentiment of the 2022 NMHC Annual Meeting seemed positive—reflecting strong performance of multifamily assets, high transaction volumes through 2021, and optimism for a good year ahead. Of the many dynamic topics presented on-stage and overheard in the corridors during the 2022 NMHC Annual Meeting, three that merit special mention and industry consideration for the year ahead are: shifts in renter preferences, rent control, and institutional excitement for single-family rentals.

As the U.S. commercial real estate market continued its recovery from the COVID-19 pandemic-related recession in 2021, the multifamily and single-family rental sectors proved their resilience. Throughout the year we continued to provide unique research and insights into these markets. Here’s a look at our top Arbor Chatter posts from 2021, in case you missed them.

Inflation concerns, new virus variants, tighter monetary policy and high construction costs are among the top factors set to impact multifamily in the year ahead. Read on for the full lookahead from Arbor and Chandan Economics.

Current data on single-family rental construction costs lacks the ability to track build-for-rent properties. Based on a new Arbor and Chandan Economics methodology, our findings show single-family construction starts totaled 86,000 (47,000 BTR and 39,000 BFR units) as of the year ending in the third quarter of 2021.

The single-family rental sector is firing on all cylinders, with key indicators reflecting a healthy inflow if investment capital and tenant demand.

Smaller metro markets continued to outperform larger gateway markets in the third quarter of 2021, notching more small multifamily cap rate compression than gateway markets.