As borrowing costs rose and rent growth slowed, multifamily developers pulled back the reins in 2023. Nationally, the number of multifamily building permits sank 20.3% last year, according to the latest data from the U.S. Census Bureau. However, there are many metropolitan markets where activity has not slowed. In this deep dive, our research teams show which metros led the nation in multifamily permitting activity in 2023.
Now as old as 26, Generation Z is on the cusp of reshaping the rental market as they leave the nest in increasing numbers. In fact, it is the only generation adding rental households, while the amount of millennial renters has already peaked. Gen Z, the first digital natives, is poised to become the most influential demographic in the multifamily rental market.
Corporate Responsibility and Impact at Arbor Our origin is that of a small company with an entrepreneurial spirit dedicated to building meaningful partnerships with those who align with our investing goals and strategy. While we have grown significantly over the last 30+ years, we have retained that core spirit, which draws a talented and diverse employee base and provides a solid foundation for Arbor to offer meaningful programs, including affordable housing across the United States. It is indeed the relationships with our employees, counterparties, and clients that inform our business decisions as we move forward, and enable us to clearly see the path to our goals of maximizing shareholder value and company profitability while working towards environmental sustainability and positive impacts for employees, community members, and all stakeholders. Arbor strives to maintain these fundamental constructs that have brought us great success while realizing those areas in which we can continue to grow and develop as an exemplary corporate citizen. Our dedication to corporate responsibility and sustainability is clearly evidenced through our recent initiatives, as well as our ongoing commitment to Read the full article…
Arbor is a leading large loan lender, offering unparalleled expertise, experience and service to our clients. Our customized products and track record ensure speed and certainty of execution, no matter the complexity of the deal.
The state of housing affordability in the U.S. has continued to erode as a growing wave of supply-driven policies offers hope of a solution on the horizon. A closer look at the nation’s overall housing needs underscores the increasing urgency of the situation.
Driven by investor confidence in multifamily housing’s long-term fundamentals, the volume of debt outstanding in the sector has grown by nearly 150% since the end of the Great Recession. As this piece will detail, where investment dollars have flowed, housing demand has followed. Through an analysis of newly released U.S. Census Bureau American Community Survey data, our research teams pinpoint the growing size and scope of the largest rental housing property type.
Even as the single-family rental (SFR) sector has attracted increased investor activity, the total number of SFR households has moderated due to the influence of overarching housing trends.
In this video, Dr. Sam Chandan, Founding Director of the C.H. Chen Institute for Global Real Estate Finance at the NYU Stern School of Business and non-executive chairman of Chandan Economics, discusses key takeaways from Arbor’s Affordable Housing Trends Report Fall 2023.
The rental housing sector is well-insulated but not immune to market forces even as the economy edges into correction territory, Arbor Chairman and CEO Ivan Kaufman and Chandan Economics Founder Sam Chandan demonstrate in the findings of Arbor’s Special Report Spring 2023.
Until recently, full-scale optimization has skipped over the basic monthly rental payment transaction, with 78% of more than 100 million renters using paper checks. But now, two programs, backed by global leaders in financial services, are incentivizing tenants to pay the rent on credit, with perks like automatic credit reporting and points towards future purchases.
Renters 30 years of age and under, who now make up slightly more than one-quarter of the heads of households of rental units, are bolstering housing demand in markets known for their affordability and livability.
Multifamily investing involves the purchasing of properties with rentable housing units. In these types of investments, a group of investors often works together to mitigate costs, split profit shares, and reduce risk. Multifamily properties include apartment complexes, condo buildings, and townhouses, among other property types. When investing in multifamily properties is researched and undertaken prudently, it can generate steady and reliable income streams in all economic cycles.
Driven by cyclical, demographic, and technological factors, the single-family rental (SFR) sector has matured over the past decade. The once-fragmented industry has both coalesced and professionalized. While the evolution of the SFR sector has been explored at length, a clear picture of its core set of tenants is just now coming into focus.
The Federal Housing Finance Agency (FHFA) announced a $6 billion rollback of Fannie Mae and Freddie Mac’s volume cap for loan purchases for 2023 to $150 billion ($75 billion for each agency) as multifamily transaction activity has declined in 2022. FHFA also added new provisions to its mission-driven lending initiative designed to increase investment in affordable and workforce housing, two sectors with significant growth potential in a tight housing market.
Arbor Chairman and CEO Ivan Kaufman kicked off the first full day of eCore22 in Miami this November with an informative and intimate panel discussion, featuring Charles Ostroff, SVP Multifamily Chief Credit Officer at Fannie Mae, Robert Verrone, Principal at Iron Hound Management Company, and Aaron Kurlansky, Principal at Sheridan Capital, that covered the most pressing economic issues of the moment.
The highly anticipated transition from LIBOR® to SOFR, which goes into effect after June 30, 2023, will make SOFR the standard benchmark rate across a wide range of financial products. Although the financial community is expecting a smooth transition, there are notable differences between the two rates that will influence multifamily lending.
In the last quarter of 2022, the multifamily sector continues to thrive despite ongoing economic uncertainty. As the investment community looks ahead to 2023, Arbor’s Managing Director, Senior Production Officer Jean-Laurent Pouliot discusses what’s in store for multifamily and how Arbor is positioned to help investors continue to exceed expectations next year.
With the latest release of the Consumer Price Index (CPI) report from the U.S. Bureau of Labor Statistics (BLS), policymakers and consumers alike found signs of inflation relief for the first time in a long time. Despite the CPI’s overall improvement in October, one notable price category is still seeing rising inflation: rent of primary residence. The annual growth rate for the rent component of the CPI has now increased for 15 consecutive months.