COVID-19 Creates Immediate Challenges, Long-Term Opportunities COVID-19 has hit the U.S. economy in full force. Yet leasing and investment brokers are still reporting a high demand for single-family rentals (SFRs). Chandan Economics estimates occupancy rates on transacted SFRs increased to 98.5% in the first quarter of 2020. As a niche sector, SFRs benefit from particularly strong tenant retention. During difficult economic times, SFRs are likely to attract people who would otherwise choose to purchase their own homes. They also appeal to tenants wanting the flexibility of renting. The analysis concludes that with appropriate underwriting standards and financially secure households, SFRs should see a future surge in demand. Download the full report, “Q1 2020 Single-Family Rental Investment Trends Report,” for the latest insights on: State of the Market Occupancy Cap Rates & Prices Loan-to-Value Ratios Debt Yields Build to Rent Future Demand
Small Balance Multifamily Investment Snapshot — Q4 2017
![q3-2021-small-multifamily investment](https://arbor.com/wp-content/uploads/2017/01/Smal-Balance-Snapshot-Thumb.png)
Here’s a quick look at the small balance multifamily finance and investment benchmarks for Q4 2017.
![q3-2021-small-multifamily investment](https://arbor.com/wp-content/uploads/2017/01/Smal-Balance-Snapshot-Thumb.png)
Los Angeles Multifamily Rents Hit New Highs for 2017, Class B/C Vacancies Decrease
![Aerial view of Los Angeles in the evening](https://arbor.com/wp-content/uploads/2018/03/LA-Highways_Chatter.jpg)
Los Angeles remained one of the more sought-after multifamily markets in the U.S. during 2017, as rent growth and investment volume ranked near the top nationally. The vacancy rate also remained low, despite an influx of new supply, and demand for additional housing remains high. The local economy has recovered from the recession, although high housing costs and restricted in-migration may slow expansion.
![Aerial view of Los Angeles in the evening](https://arbor.com/wp-content/uploads/2018/03/LA-Highways_Chatter.jpg)
Dallas Multifamily Posts Strong 2017, Eyes on Supply & Demand Balance for 2018
![Dallas Texas city scape in the early evening seen from the water](https://arbor.com/wp-content/uploads/2018/03/Downtown-Dallas_1200px.jpg)
The Dallas multifamily market posted strong results in 2017 as rent growth continued and investment activity was high. Vacancy — driven by an influx of new supply — increased, though levels remained well below previous highs.
![Dallas Texas city scape in the early evening seen from the water](https://arbor.com/wp-content/uploads/2018/03/Downtown-Dallas_1200px.jpg)
Climate Resiliency Can Further Reduce Flood Risk Impacts on Multifamily Rents
![Flooded neighborhood](https://arbor.com/wp-content/uploads/2018/03/Flooded-Chicagoland-1.jpg)
With a lower share of inventory located in flood-prone areas, small buildings are more conservative in their risk profile and offer value for investment across the apartment market. Resiliency and Risk Landscape for Small Buildings Recent reports point to a counter-intuitive trend of how home prices and apartment rents are growing faster in flood prone areas. This trend is explained by the premium associated with scenic locations such as beach fronts and waterways, since they are also the most-prone to flooding. This varies across metro areas and asset class. As shown below, based on data obtained from the American Housing Survey (AHS) 2015, around 8% of all small apartment building units in the United States were located within areas assessed with a high risk of flooding. In large buildings the share was slightly larger at 10%. The risk assessment for apartment buildings and their units varies greatly across metro areas. The data indicates that small buildings displayed a tighter spread around the national average compared to large buildings. An indication of the preference for scenic, albeit riskier, locations characterize the Read the full article…
![Flooded neighborhood](https://arbor.com/wp-content/uploads/2018/03/Flooded-Chicagoland-1.jpg)
Q4 2017 Small Balance Multifamily Investment Trends Report
![Thumbnail of Q4 2017 Small Balance Multifamily Investment Trends Report](https://arbor.com/wp-content/uploads/2018/03/Chandan-Quarterly-Report-Q4-website-header-2017-1.jpg)
Aided by growth in agency lending and refinancing activity, the volume of new multifamily loans with balances between $1 million and $5 million reached $49.8 billion during 2017
![Thumbnail of Q4 2017 Small Balance Multifamily Investment Trends Report](https://arbor.com/wp-content/uploads/2018/03/Chandan-Quarterly-Report-Q4-website-header-2017-1.jpg)
How Apartment Community Size Impacts Unit and Neighborhood Ratings
![](https://arbor.com/wp-content/uploads/2017/10/Neighborhood-Rating-1.jpg)
For their relatively lower rent levels, small apartment properties are surprisingly well-rated by their occupants, both in terms of unit quality and the neighborhoods in which they are located.
![](https://arbor.com/wp-content/uploads/2017/10/Neighborhood-Rating-1.jpg)
U.S. Multifamily Year in Review 2017 – Still Going Strong
![Birmingham, Alabama skyline seen from the water](https://arbor.com/wp-content/uploads/2018/02/Birmingham.jpg)
The U.S. multifamily market continued to post strong results during 2017. Rent growth slowed, although remained healthy, and appears to have peaked in 2015.
![Birmingham, Alabama skyline seen from the water](https://arbor.com/wp-content/uploads/2018/02/Birmingham.jpg)
Seniors Housing and Healthcare Trends for 2018
![Panel at MBA CREF 2018 Conference](https://arbor.com/wp-content/uploads/2018/02/Seniors-Housing-Trends-Panel.jpg)
Increased life expectancy, aging baby boomers and the skyrocketing costs of hospital stays have created demand for a broader, more comprehensive set of seniors housing options. An expert panel met at the Mortgage Bankers Association’s (MBA) 2018 CREF conference in San Diego to expound on trends in the ever-evolving sector.
![Panel at MBA CREF 2018 Conference](https://arbor.com/wp-content/uploads/2018/02/Seniors-Housing-Trends-Panel.jpg)
Small Buildings Still Dominate Apartment Renter Shares
![Row of multifamily apartment buildings](https://arbor.com/wp-content/uploads/2018/02/Small-Building-Renters-Growing-resize.jpg)
While a majority of apartment renters continue to live in small properties, renter growth in this property class is facing headwinds from large asset oversupply and rental incentives.
![Row of multifamily apartment buildings](https://arbor.com/wp-content/uploads/2018/02/Small-Building-Renters-Growing-resize.jpg)
Small Building Renters Are Growing in a Handful of Regional Markets Amidst General Decline
![St. Louis Skyline from the perspective of the water](https://arbor.com/wp-content/uploads/2018/02/st.louis-resize.jpg)
While apartment renting remains a predominantly urban affair across both the downtown and suburban areas of large US metros, renting activity is expanding into smaller cities and new property types.
![St. Louis Skyline from the perspective of the water](https://arbor.com/wp-content/uploads/2018/02/st.louis-resize.jpg)