Arbor’s Single-Family Rental Investment Trends Report Q2 2022, published in partnership with Chandan Economics, finds flourishing growth and a firmly positive outlook for the sector amid a challenging macroeconomic cycle. High demand, a countercyclical business model, and the ability to absorb inflation will likely continue to propel the SFR market upwards.
The U.S. multifamily posted a historic showing in the second quarter of 2022. Among nation’s top markets for rent growth, the Sunbelt markets continued to shine.
Rent Growth and New Construction Trend Higher as Cap Rates Edge Lower The single-family rental market (SFR) is flourishing even as growth slows in many other sectors. The immediate outlook for SFR remains firmly positive as a bedrock of demand, a countercyclical business model, and the ability to absorb inflation propel SFR upwards in a challenging macroeconomic cycle. Key Findings: Vacant-to-occupied rent growth surges again, reaching 14.8% year-over-year. Cap rates slide back to 5.3%, just above all-time lows. Build-to-rent construction starts totaled 57,000 over the past year, a new record high. Complete the form to instantly access the full report!
Throughout history, rental housing has typically stayed stable amidst economic pressures due to cyclical forces present in the market, Arbor Realty Trust’s CEO and Chairman Ivan Kaufman and Chandan Economics’ Founder Sam Chandan write in Arbor’s Special Report | Summer 2022. Key Findings: The Federal Reserve continues to engage in aggressive monetary tightening. The rental housing sector is well-positioned to withstand growing economic headwinds because the cyclical forces that lower homeownership rates also historically have increased rental housing demand. Superstar cities must undertake strategies to address affordability and livability concerns to compete in a remote-work economy. Complete the form to instantly access the full report!
Throughout history, rental housing has typically stayed stable amidst economic pressures due to cyclical forces present in the market, Arbor Realty Trust’s CEO and Chairman Ivan Kaufman and Chandan Economics’ Founder Sam Chandan write in Arbor’s Special Report | Summer 2022.
A Message from Ivan Kaufman In celebration of you as a top producer, and in appreciation for your contributions to our prosperous performance, John and I are pleased to invite you and your spouse to join us at this year’s President’s Circle event at Stanly Ranch in Napa, California. It takes an extremely high level of commitment to achieve this recognition, and we congratulate you on a job well done. You are a critical member of our team, and your continuing excellence helps Arbor position itself as a leader in our highly competitive industry. We look forward to an extraordinary few days together. Ivan Kaufman
Arbor’s Small Multifamily Investment Trends Report Q2 2022, published in partnership with Chandan Economics, takes an up-close look at a sector poised to benefit from a unique set of market forces. As cap rates compress to record lows, more buyers are pursuing inflation protection in the multifamily sector and the small asset subsector.
Our quarterly report on the current and emerging small multifamily investment trends features data and research from Chandan Economics. The report reviews the state of the market, identifying trends in underwriting, financing, cap rates, valuation and more. In the report, you’ll learn how small multifamily properties differ from larger properties, and the forces driving their investment performance. Key Findings: Small multifamily originations are on pace to hit $91.1 billion in 2022, just shy of 2021’s record high. Cap rates reached a new record low in the second quarter, declining to 5.0%. Amid surging rents and property-level incomes, expense ratios have returned to pre-pandemic levels. Complete the form to instantly access the full report!
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Find out about coronavirus developments and the potential implications for the real estate industry with Arbor Realty Trust’s COVID-19 CRE Resource Guide.
Older renters are increasingly becoming a significant driver of urban multifamily demand. Walkability, convenience and access to a variety of services attract aging Americans to certain cities.
With rising construction costs, a New York Build 2020 Expo panel shared their thoughts about an industry concern: How can affordable housing yield profits?
While Gen Z is emerging as a source of multifamily demand, millennial renters still dominate the apartment market across a variety of metros.
While the real estate industry is slow to adopt new technology, experts provide steps to take when investing in proptech to increase efficiency.
What’s topping the checklists of property management concerns? A New York Build 2020 Expo panel agreed that in the upcoming decade, multifamily property owners will need to focus on two areas: amenities and legal requirements. Renovations Needed to Stay Competitive Owners will need to invest in upgrading their properties to stay current with tenants’ changing lifestyles. “With almost every lobby renovation, one of the key challenges is where do all the packages go and how do you distribute them,” said William T. Payne, principal at O&S Engineers & Architects. “What if the mailroom is way too small for Amazon?” More residents are ordering deliveries of not just meals but now groceries. Payne stated this raises additional security issues with more people knocking on the door. He also noted the rising demand for bicycle parking and charging stations for electric vehicles. With these types of property upgrades, owners need to be honest in their requests for proposals (RFPs), said Carmen Rainieri, regional director at Skanska. This includes providing accurate information about pricing and logistics. In working with contractors and consultants, “collaboration Read the full article…
Boston’s strong labor market and new lifestyle amenities are translating into greater success for the metro’s small multifamily sector.
More single-family rental households are turning to newly constructed build-to-rent properties, and recent data points to room for continued growth.
Young adults in STEM plus the Arts ISTEAM) professions now dominate the multifamily market with shifts in their income and housing.
We’re proud to introduce “Entrepreneurial to the Core,” a new ongoing series from Arbor’s President and CEO Ivan Kaufman.