In a new special report series, Arbor Chairman and CEO Ivan Kaufman examines the state of the economy and the unique factors impacting our path to recovery. The inaugural piece focuses on what we can expect in the next six to eight months and examines where we have been thus far.
Hunting High-Yield SFR Markets: Where to Find Double-Digit Returns
![Button with profit on it being cranked up to high setting](https://arbor.com/wp-content/uploads/2018/11/HouseCanary-SFR-article-RESIZE.jpg)
Single-family rentals (SFR) are anything but a passive investment. Much more goes into net operating income (NOI) or, more accurately, detracts from it than just gross rents. Investors must also consider rehab, taxes, concessions, vacancies, and a myriad of other expenses. And like any other investment, higher returns are generally associated with higher investment risk.
![Button with profit on it being cranked up to high setting](https://arbor.com/wp-content/uploads/2018/11/HouseCanary-SFR-article-RESIZE.jpg)
Webinar: How to Spot Strong Small Balance Multifamily Investment Opportunities in L.A.
![Palm trees in front of massive apartment complex in Los Angeles](https://arbor.com/wp-content/uploads/2018/11/GettyImages-918624832-LA-Webinar-1024x683-1.jpg)
Join Arbor and Freddie Mac for our complimentary live webinar on Tuesday, Dec. 4 at 2:00 p.m. EST, hosted by Los Angeles Business Journal, to learn about the small balance finance and investment opportunities in L.A.!
![Palm trees in front of massive apartment complex in Los Angeles](https://arbor.com/wp-content/uploads/2018/11/GettyImages-918624832-LA-Webinar-1024x683-1.jpg)
Millennial Renter Income Profiles Mirror Market Averages
![Man in business attire being handed a check from across the table](https://arbor.com/wp-content/uploads/2018/11/Millennials-Income-Profile-RESIZE.jpg)
Young adult apartment renters earn as much as their older neighbors, with those living alone earning significantly higher income than the market average in downtown locations.
![Man in business attire being handed a check from across the table](https://arbor.com/wp-content/uploads/2018/11/Millennials-Income-Profile-RESIZE.jpg)
Webinar: Optimizing Your Portfolio with Small Multifamily Financing
![Hands on keyboard and mouse pad of laptop in dimly lit room](https://arbor.com/wp-content/uploads/2018/11/Webinar-graphic-for-carousel-and-blog-post.jpg)
View our webinar on finance and investment opportunities in the small multifamily space! Moderated by economist Sam Chandan, this complimentary on-demand webinar from Arbor and Fannie Mae will present actionable ways for small multifamily owners and operators to optimize and expand their portfolios.
![Hands on keyboard and mouse pad of laptop in dimly lit room](https://arbor.com/wp-content/uploads/2018/11/Webinar-graphic-for-carousel-and-blog-post.jpg)
Apartment Inventory Reveals Decades-Long Shift Toward Larger Unit Sizes
![Interior of empty apartment with wood floors and white paint job](https://arbor.com/wp-content/uploads/2018/10/Apartment-Inventory-larger-unit-sizes-RESIZE.jpg)
While small and large apartment buildings are specialized in terms of unit mix, inventory additions over time have been skewed toward larger units across both asset classes.
![Interior of empty apartment with wood floors and white paint job](https://arbor.com/wp-content/uploads/2018/10/Apartment-Inventory-larger-unit-sizes-RESIZE.jpg)
Small Apartment Buildings Show Tighter Rent Spread by Property Age
![Small apartment buildings in city](https://arbor.com/wp-content/uploads/2018/10/Rent-Spread-by-Property-Age-RESIZE.jpg)
Compared to other rental properties, average rents in small asset multifamily vary less by property age, while rents for prewar buildings are going toe-to-toe with newer construction.
![Small apartment buildings in city](https://arbor.com/wp-content/uploads/2018/10/Rent-Spread-by-Property-Age-RESIZE.jpg)
Top Commercial Real Estate Trends to Watch in 2019
![ULI logo](https://arbor.com/wp-content/uploads/2018/10/IMG_6613-e1539789416982.jpg)
Slow and steady growth coupled by cautious optimism seemed to be the overall sentiment shared by real estate economists and industry experts at the 2018 ULI Fall Meeting in Boston, where panelists revealed their forecast for the U.S. economy and real estate market heading into 2019, as well as the annual ULI-PwC Emerging Trends in Real Estate Report, which discusses major trends to watch over the next several years. The overall outlook for the U.S. economy was positive, according to a forecast of 45 economists and analysts surveyed by ULI in September 2018, with expectations for continued, moderate growth despite a sea change in macroeconomic policy, including rising interest rates, tax reform, and more restrictive immigration. Fundamentals are expected to remain strong through 2020, with a slight moderation in some areas. Highlights include: • GDP growth: The survey forecasts GDP growth to end this year at 3.0%, before it slows to 2.5% in 2019 and 1.7% range in 2020. • Unemployment rate: The current record-low rate of 3.8% is expected to bump up slightly to 4.0% by 2020. • Transaction Read the full article…
![ULI logo](https://arbor.com/wp-content/uploads/2018/10/IMG_6613-e1539789416982.jpg)
ULI Special Report: For Renters, Walkability is Becoming More Valuable Than Public Transit
![Happy young female in business attire walking on the sidewalk in the city](https://arbor.com/wp-content/uploads/2018/10/Renters-Walkability-Public-Transit-RESIZE.jpg)
Technology is proving to be a major disruptor across sectors and real estate is no exception. Ride hailing and driverless vehicles were two top-of-mind disruptors at the 2018 ULI Fall Meeting in Boston, with industry panelists noting that these technological developments are fundamentally changing the way we build and manage our assets, and changing renter preferences from valuing public transit to putting a premium on walkability.
![Happy young female in business attire walking on the sidewalk in the city](https://arbor.com/wp-content/uploads/2018/10/Renters-Walkability-Public-Transit-RESIZE.jpg)
Renter Data Reflects Broader National Decline in Public Transportation Use
![Red button alongside bus seats to stop the bus](https://arbor.com/wp-content/uploads/2018/09/Renter-Data-Reflects-Public-Transportation-RESIZE.jpg)
While public transportation usage is highest among apartment renters, recent data show a secular decline, keeping with the overall trend of changing commuter preferences and workplace environments. Driving to Work Lower Among Apartment Renters Reflecting the recent spike in car ownership rates and lower gas prices, driving to work has experienced a resurgence. Conversely, public transportation usage has witnessed alarming declines across major US cities, largely attributed to lower system upgrades. As shown below, commuting by private vehicles (primarily cars) was the dominant mode of transportation for working renters across all asset types. Between asset types, however, private vehicle rates varied from a high of an 87% share in suburban single-family rentals to a 64% share in downtown-oriented large apartment properties in 20161. Car ridership shares in small apartment properties, which are more dispersed along the downtown-suburban continuum, landed in an expected middle ground at 77%. Looking at the broader transportation landscape, as shown below, commuting rates by public transportation (including taxis, less than 1%) varied significantly from a share of only 4% in single-family rentals, to 12% in small Read the full article…
![Red button alongside bus seats to stop the bus](https://arbor.com/wp-content/uploads/2018/09/Renter-Data-Reflects-Public-Transportation-RESIZE.jpg)
Small Balance Multifamily Investment Snapshot — Q2 2018
![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 Q2 2018.
![q3-2021-small-multifamily investment](https://arbor.com/wp-content/uploads/2017/01/Smal-Balance-Snapshot-Thumb.png)