How will inflation, tightening monetary policy, and labor shortages affect housing in 2022? Ivan Kaufman, Arbor Realty Trust’s Chairman and CEO, and Sam Chandan, NYU Stern professor and founder of Chandan Economics, reflect on the past year and the year ahead in this special report. Key Findings: Labor shortages and a consumption shift toward goods over services are key factors contributing to supply chain disruptions, stoking inflation. The Federal Reserve’s monetary tightening is front and center heading into the new year as the central bank anticipates three rate hikes in 2022 and 2023, setting the stage for higher costs of capital. Historically low vacancy rates reflect a rental housing market where household demand continues to exceed available supply. Changes in where and how people work are allowing Americans to choose housing options across a wider geographic area. Complete the form to instantly access the full report!
Analysis
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.
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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.
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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.
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The single-family rental sector is firing on all cylinders, with key indicators reflecting a healthy inflow if investment capital and tenant demand.
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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.
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In Q3 2021, small multifamily assets continued to retain the stability that has become the hallmark for the sector. Here’s a quick look at Q3 2021 small multifamily investment benchmarks.
Analysis
Panelists during eCore21 noted their surprise at multifamily’s quick recovery from the pandemic, with surging rent growth and robust demand in many markets. Here are five key takeaways from the event.