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.
UNIONDALE, NY, December 15, 2022 (GLOBE NEWSWIRE) – Arbor Realty Trust, Inc. (NYSE:ABR) (“Arbor,” “our,” or “we”) today announced the completion of an approximately $315 million loan securitization through Freddie Mac’s Q Series securitization program (the “Securitization”). Arbor’s affiliated entity Arbor Realty SR, Inc. originated the loans and was the loan seller for the Securitization. The Securitization is Arbor’s first Freddie Mac Q Series transaction. The Securitization is backed by a pool of 11 floating rate loans secured by first priority mortgage liens on 21 multifamily properties that qualify as mission-driven under the Federal Housing Finance Agency guidelines. Nearly 60% of the units at the properties have rents affordable to households that earn 60% of Area Median Income (“AMI”) and 95% are affordable to households that earn 80% of AMI. Arbor’s servicing and asset management affiliate, Arbor Multifamily Lending, LLC, will be the sub-servicer of the loans. “As a well-established Freddie Mac Optigo® seller/servicer and one of the top contributors to the Freddie Mac SBL Program, Arbor is honored to join Freddie Mac’s Q Series program and further build on our tremendous relationship with Freddie Mac,” said Ivan Kaufman, Founder, Read the full article…
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.
After taking a pause during the peak of the COVID-19 pandemic, the U.S. multifamily market experienced a banner year in 2022. Throughout the year, Arbor continued to provide unique research and insights into our markets. Here’s a look at our top Arbor research articles from 2022, in case you missed them.
As we move into 2023, all eyes will once again be on the Federal Reserve, the job market, and the housing market. Investors who are in a good position going into the correction will be able to take advantage of opportunities.
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 eCore21 Summit brought together multifamily industry owners, operators, lenders and other executives to share their insights on the top trends impacting the multifamily market and what they expect in the year ahead. Here’s a quick recap of the eCore event.
Multifamily rent growth for the U.S. overall was up 7.9% year-over-year during the third quarter of 2021, as Sun Belt markets continued to drive the recovery.
The pandemic accelerated the adoption of hybrid and work-from-home (WFH) setups across industries and geographies. While WFH adoption initially posed as a headwind for large multifamily properties in gateway markets, new tenants and urban dwellers are returning to the cities, bringing signs of optimism for rental demand.
Las Vegas remained one of the nation’s top multifamily performers in the third quarter of 2021, with among the highest rent growth among large markets. After a brief pause at the onset of the pandemic, investors once again flooded into the market as sales volume neared a pace to reach 2019’s record high. The market also rose to the top of our Arbor-Chandan Large Multifamily Opportunity Matrix in 2021.
The Q3 2021 Small Multifamily Investment Trends Report finds that the asset class may be less impacted by work from home trends than larger properties as fewer small multifamily tenants can work remotely. See how the small multifamily sector performed by reading the full report.
Our 2021 Top Markets for Large Multifamily Investment Report ranks the top 50 U.S. metros based on eight key categories. Presented in the Arbor-Chandan Large Multifamily Opportunity Matrix, the top-ranking markets scored high in factors like labor market performance, renter demographics, population growth and COVID-19 response.
The SCOTUS ruling to end the eviction moratorium is pushing the multifamily industry to come up with other solutions to help at risk renters. Read the full analysis.
The SFR sector remained strong in the second quarter of 2021, as record demand led to surging rent growth and improving cap rates.
The House Appropriations Committee approved $56.5 billion in new funding for HUD in fiscal year 2022 (FY22), reflecting the Administration’s focus on housing affordability. Read on for a breakdown of the proposed budget and its implications for affordable housing.
After falling four consecutive quarters, effective rent growth finally turned positive during the second quarter of 2021, although remained down year-over-year. The vacancy also improved, driven by strong apartment demand and new household formation.