Research

The Spring 2022 Arbor Realty Trust-Chandan Economics Affordable Housing Trends Report provides comprehensive insight and analysis of major trends shaping affordable housing nationwide. Our report examines the major market developments and the outlook ahead.

The list of metros with noticeably higher permits per capita includes familiar growth markets such as Austin, TX, and Nashville, TN, but also under-the-radar markets like Bloomington, IN, and Rapid City, SD.

Climbing home prices, rising rents, and widespread inflation have combined to create a challenging economic climate for both businesses and individuals. Demand for affordable housing options remains high, though the current climate has exacerbated the affordability crisis that predates the pandemic.

Demand stability and growing liquidity for small multifamily assets are broadly supportive of the sector heading into 2022. Here’s a look at Q4 2021 small multifamily investment benchmarks.

Single-family rental enjoyed its best year on record in 2021, as demographic and pandemic-related forces combined with growing investment enthusiasm. The sector’s decade-long trend of institutionalization has accelerated over the past year.

At the Mortgage Bankers Association’s (MBA) 2022 Commercial/Multifamily Finance Convention and Expo) in San Diego, CA, in mid-February, the following three topics were discussed by presenters and attendees and reflect what’s top-of-mind for the industry.

The SFR sector has historically attracted renters who seek a more spacious, suburban lifestyle but are not looking to buy for various reasons. While the concept of SFR is not new, it has gained more attention in the last decade as institutional involvement has increased following the Global Financial Crisis (GFC).

Multifamily rent growth for the U.S. overall was up 12.5% during 2021, the largest annual gain since REIS began tracking data in 1980. As was the case throughout the year, Florida markets were found up and down the list of top rent growth markets.

Despite a slow start to 2021, the U.S. multifamily market posted a record-breaking year. Rent growth was the highest since REIS began tracking data in 1980, as vacancy rates continued their downward trend. Investment sales also shattered previous records, while cap rates remained near historic lows and below those of other major property types.

The general sentiment of the 2022 NMHC Annual Meeting seemed positive—reflecting strong performance of multifamily assets, high transaction volumes through 2021, and optimism for a good year ahead. Of the many dynamic topics presented on-stage and overheard in the corridors during the 2022 NMHC Annual Meeting, three that merit special mention and industry consideration for the year ahead are: shifts in renter preferences, rent control, and institutional excitement for single-family rentals.