A nationwide housing shortage of rental homes, coupled with the rising costs of homeownership, has fueled the popularity of high-quality, affordable single-family rental (SFR)/build-to-rent (BTR) homes. In recent years, SFR/BTR construction starts have consistently reached new highs. In today’s economic environment, where mortgage payments are more expensive than rent payments in many markets, build-to-rent loans are a forward-thinking investment strategy.
The SFR sector is well-positioned to limit distress through the challenges of the current moment while advancing its standing within the single-family housing market for the long term.
Following a banner year in 2022, the U.S. multifamily market held steady during 2023. Arbor provided research and insights into our markets throughout the year. Here’s a look at our top Arbor research articles from 2023, in case you missed them.
Miami — a market with an attractive climate, urban amenities, and quality transportation options — has seen intense post-pandemic population growth. While its resurgence has been celebrated by many, Miami’s success has come at the cost of weakening rental affordability in the city.
UNIONDALE, NEW YORK – December 18, 2023 – Arbor Realty Trust (NYSE: ABR) has ranked #9 in the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) Top Multifamily Lender in Initial Endorsements list for the fiscal year ending September 30, 2023. In partnership with borrowers, Arbor posted over $230M in total FHA/HUD origination volume as a Multifamily Accelerated Processing (MAP) Lender. This achievement represents Arbor’s first Top 10 appearance on this list. The result is representative of Arbor’s strong core commitment to agency origination. “FHA loan programs offer high-quality multifamily financing solutions across all rate environments,” said Arbor COO John Caulfield. “Our originators, underwriters and asset managers are well-familiar with HUD’s expansive multifamily product set, and we appreciate the relationships we’ve built over the years and the collaborative growth that this result demonstrates.” Arbor also ranked #14 on HUD’s Top FHA Multifamily Lender by Firm Commitments list, jumping from #19 in 2020. This marks Arbor’s fifth year in the Top 20 by Firm Commitments. About Arbor Arbor Realty Trust, Inc. (NYSE: ABR) is a nationwide real estate investment Read the full article…
For low-income renters, affordability is a deeply rooted issue. Since 2010, rental affordability has consistently and severely eroded in the U.S., with average rents growing faster annually than average incomes more than 72% of the time. As renters face increased inflationary pressures, state and local governments are exploring a mix of creative and tried-and-true solutions to expand the affordable housing supply.
As the single-family rental (SFR) investment market matures, a clearer picture of its typical renter has begun to come into focus. On December 5 at IMN’s 11th Annual Single Family Rental Forum (West), a group of industry leaders, including Arbor’s Tres Seippel, Director, Construction Management, explored how demographic trends have influenced the rise in popularity of single-family rental homes.
Q2 2020 Small Multifamily Investment Trends Report Small Multifamily Weathers the Storm TAKE THE PDF WITH YOU Table of Contents Key Findings: Small multifamily prices fell 5.6% from a year ago. Cap rates held steady as risk-free rates fell. Small multifamily LTVs dropped by 360 bps from the prior quarter. Table of Contents: State of the Multifamily Market Lending Volume of Multifamily Loans Arbor Small Multifamily Price Index Cap Rates & Spreads Leverage and Debt Yields Multifamily Market Outlook Key Findings: Small multifamily prices fell 5.6% from a year ago. Cap rates held steady as risk-free rates fell. Small multifamily LTVs dropped by 360 bps from the prior quarter. State of the Multifamily Market When the Nobel Committee meets this year to decide who has made the most meaningful contributions to the field of economics, they might as well give the honor to the epidemiologists. Right now, those experts are providing key indicators of the future of markets throughout the world shaped by the course of the COVID-19 pandemic. Disorganized and inconsistent reopenings in the U.S. economy have fanned Read the full article…
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.
The single-family rental (SFR) market maintained a favorable outlook in the third quarter of 2022 as the national housing market began cooling. Amid economic headwinds, SFR is well-positioned as a primary alternative for would-be homebuyers priced out of ownership in today’s high-interest-rate housing market.
With investors now seeking inflation protection, the small multifamily sector continues to see gains. Arbor’s new quarterly Small Multifamily Investment Trends Report, published in partnership with Chandan Economics, sheds light on key trends, including firm cap rates, climbing valuations, and elevated originations, despite tightening underwriting standards.
When Americans go to the ballot box on November 8, the congressional map will look slightly different than it has for the past decade. Six states picked up seats in the House of Representatives: Colorado, Florida, Montana, North Carolina, Texas, and Oregon. The results of the last five years (2018-2022) of the U.S. Census Bureau’s Current Population Survey ASEC explore the reasons households provided for moving to those states that will be gaining more representation in Washington, D.C.
All of the top 50 metropolitan areas in the U.S. registered unemployment rate improvements during the 12 months ending in August 2022. Los Angeles led the country with the largest decline in its unemployment rate, shaving off 3.7 percentage points from one year ago. Riverside (-3.3%), Detroit (-3.2%), San Diego (-3.1%), and Sacramento (-2.8%) all followed closely behind with sizable declines.
The increased frequency of major hurricanes brings into question whether robust in-migration patterns will hold in the face of growing climate risks. While there is a growing concern that the increase in extreme weather events could dampen housing demand in at-risk or effected areas, history displays a different pattern.
Arbor’s Affordable Housing Trends Report Fall 2022, developed in partnership with Chandan Economics, examines the affordable housing market’s growth trajectory in a challenging economic climate. It examines key programs, including the Low-Income Housing Tax Credit (LIHTC) and the Housing Choice Voucher (HCV), likely to influence the market’s performance in the coming year.