Research

As the U.S. commercial real estate market continued its recovery from the COVID-19 pandemic-related recession in 2021, the multifamily and single-family rental sectors proved their resilience. Throughout the year we continued to provide unique research and insights into these markets. Here’s a look at our top Arbor Chatter posts from 2021, in case you missed them.

The single-family rental sector is firing on all cylinders, with key indicators reflecting a healthy inflow if investment capital and tenant demand.

In Q3 2021, small multifamily assets continued to retain the stability that has become the hallmark for the sector. Here’s a quick look at Q3 2021 small multifamily investment benchmarks.

A new report series from Arbor and Chandan Economics explores the many facets of affordable housing and the major trends shaping the market. It’s a critical time to focus on affordable housing, as pandemic-related headwinds and longstanding structural forces have impacted housing affordability.

After struggling through the first half of the year, the U.S. multifamily market burst through in the third quarter of 2021. Moody’s Analytics REIS reported that effective rent growth climbed 7.9% year-over-year, up from -1.6% for the second quarter. The vacancy rate improved to 4.7%, down from 5.3% in the previous quarter.

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.

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 SFR sector remained strong in the second quarter of 2021, as record demand led to surging rent growth and improving cap rates.

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.

After falling four consecutive quarters, U.S. multifamily rent growth finally turned positive during the second quarter of 2021.