Articles

LIHTC Program: An Impactful Affordable Housing Financing Resource

As renters face a national shortage of 7 million low-income rental homes, the U.S. Department of Housing and Urban Development’s (HUD) Low-Income Housing Tax Credit (LIHTC) program is pivotal in helping to close the affordability gap for renters. It is the nation’s most significant resource for affordable apartment housing construction, which gives state and local agencies approximately $10 billion in annual budget authority to issue tax credits for affordable housing development.

Articles

FHFA Loan Caps for 2025: What Multifamily Borrowers Need to Know

The Federal Housing Finance Agency (FHFA) announced a $3 billion boost to Fannie Mae and Freddie Mac’s volume cap for loan purchases in 2025 to $146 billion ($73 billion for each agency). This increase in FHFA loan caps for 2025 aligns with industry expectations, given the anticipation of improving market conditions and lending activity expected in a lower interest rate environment. Next year’s cap for the Government-Sponsored Entities (GSEs) is an increase of approximately 4% from the $140 billion limit set for 2024.

Analysis

U.S. Multifamily Market Snapshot — November 2024

The U.S. multifamily market held steady in a more normalized cycle through the first three quarters of 2024, following its skyrocketing recovery from the pandemic-related contraction. Rental demand remained strong, driven by the continued nationwide housing shortage and strong wage growth, while the high levels of new construction seen over the last two years appears to have peaked.

Current Reports

Small Multifamily Investment Trends Report Q4 2024

Small multifamily’s normalization pushed forward last quarter as the Federal Reserve made a long-awaited reduction to the target federal funds rate. Arbor’s Small Multifamily Investment Trends Report Q4 2024, developed in partnership with Chandan Economics, shows signs of stability have multiplied. Robust rental demand, a limited supply of quality affordable housing, and several other promising developments should support the subsector’s strength heading into 2025.

Analysis

Top U.S. Multifamily Rent Growth Markets — Q3 2024

The U.S. multifamily market held steady in a more normalized cycle during the third quarter of 2024. Rental demand remained strong, while new leaders emerged among the top markets for rent growth.

Articles

Top Markets for Wage Growth in 2024

One of the most essential factors multifamily investors need to consider before executing a transaction is the health of the local labor market. Wage growth and other trends are driven by a delicate, constantly adjusting balance of labor supply and demand. In some markets, an inflow of employers can cause wages to spike. In others, population outflows can create the same effect. In this deep dive, we expand on the data findings from the 2024 Top Markets for Multifamily Investment Report, exploring the unique conditions driving metro wage growth trends.

Press Contact

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Current Reports

Top Markets for Multifamily Investment Report 2024

With interest rate pressure easing, quality multifamily investment opportunities have emerged from coast to coast, making identifying the optimal location essential. A roadmap for investors, Top Markets for Multifamily Investment Report 2024, developed in partnership with Chandan Economics, ranks the top 50 metropolitan markets found through an analysis of 10 key factors, including affordability, population growth, and climate risk.

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The Best-Performing Cities of 2020

February 28, 2020

San Francisco tBest-Performing Cities 2020

San Francisco topped the Milken Institute’s ranking of the Top 10 Best-Performing Large Cities of 2020.

The Milken Institute’s “Best-Performing Cities” series has been used by real estate investors for two decades to identify strong markets and guide future investment. The report ranks metro areas based on past performance, and uses indicators such as job, wage and high-tech GDP growth to identify the drivers of each region’s successes and failures.

San Francisco-Redwood City-South San Francisco, CA finished at the top of the list of best-performing large cities. The metro rose three spots from its fourth-place finish in 2018. The metro also finished first in the study’s five-year high-tech GDP growth rankings. The top five metros included: Provo-Orem-UT; Austin-Round Rock, TX; Reno, NV; and Orland-Kissimmee-Sanford, FL.

The biggest jump in the large city rankings was Palm Bay-Melbourne-Titusville, FL. The metro finished 10th, and was up 47 spots from 57th in 2018. Main drivers of the region’s growth include its strong aerospace and national defense sectors. Its favorable climate also attracts residents to the region.

top 10 best performing cities 2020 milken institute — Source: Milken Institute

For the fourth year in a row, Bend-Redmond, OR finished atop the best-performing small cities rankings. Additionally, Grants Pass, OR finished in the No. 2 spot for 2019. The area rose 21 spots from the 23rd position in 2018. These cities scored high for high-tech GDP growth, as well as strong wage and job growth. The area’s diverse economy and highly educated workforce ensure these cities will be top performers for years to come.

View the full report here: Best-Performing Cities 2020: Where America’s Jobs Are Created and Sustained

For more multifamily research and insights, visit the Chatter blog. Need financing for your multifamily investment? View Arbor’s loan programs to see how we can help you achieve your investment goals today.