Our quarterly report on the current and emerging small multifamily investment trends features data and research from Chandan Economics. The report reviews the state of the market, identifying trends in underwriting, financing, cap rates, valuation and more. In the report, you’ll learn how small multifamily properties differ from larger properties, and the forces driving their investment performance. Key Findings: Small multifamily originations are on pace to hit $64.4 billion in 2022, declining from a record-setting 2021 yet remaining elevated. Asset valuations rose 14.5% year-over-year, the fastest rate since 2004. Cap rates held steady near 5.2% for the fourth consecutive quarter. Complete the form to instantly access the full report!
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.
Expert Insight and Analysis from Arbor Realty Trust and Chandan Economics 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. Key Findings: The Housing Choice Voucher program is receiving increased attention and funding. The proposed 2023 federal budget calls for a 17.4% increase in program allocations, and bipartisan lawmakers are pushing legislation to retain private landlords. States are increasingly adopting new measures to encourage the development of affordable supply, including supplemental state-level low-income housing tax credits and updates to zoning codes to allow for higher-density residential construction. After the CDC’s eviction moratorium was struck down in August, evictions remained well below their pre-pandemic averages as Emergency Rental Assistance funding saw an accelerated rollout, supporting 1.4 million households in Q4 2021. Complete the form to instantly access the full report!
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.
FREDDIE MAC Credit Building Arbor is working to make the industry more equitable for everyone. This includes establishing new ways to improve economic mobility and narrow the wealth gap renters may face today. There are 44+ million renter households in the U.S., but less than 10% of on-time rents are reported to credit bureaus. Overall, renters have much lower credit scores than homeowners and some renters have no score at all (i.e., “credit invisible”). To address these disparities, Freddie Mac will incentivize borrowers to report on-time rents through credit-reporting servicers, such as Esusu Financial Inc. Esusu’s platform enables reporting on-time rent payments to the three major credit bureaus, helping build renters’ credit scores. Benefits for Renters Establish credit scores for renters who are currently “credit invisible” and gives them the ability to improve credit scores for those with existing records. A stronger credit score may enable renters to access diverse financing, obtain financing with lower interest rates, avoid unbreakable debt traps and qualify for future mortgages. Only on-time rental payments are reported to the credit bureaus; renters are automatically unenrolled Read the full article…
UNIONDALE, NY (March 21, 2022) – Arbor Realty Trust, Inc. (NYSE:ABR), a real estate investment trust and national direct lender specializing in loan origination and servicing for multifamily, single-family rental (SFR) portfolios, seniors housing, healthcare, and other diverse commercial real estate assets, is pleased to announce the appointment of Charles Marino as Managing Director, Servicing & Agency Asset Management. Mr. Marino is responsible for the oversight and management of Arbor’s daily servicing operations as well as the Agency Asset Management functions, which include Portfolio Management, Loan Surveillance and Risk Management. In addition, he evaluates loan credit risk and portfolio performance for the Company. “Charles is coming to Arbor with over three decades of experience in all aspects of commercial lending operations and servicing,” said Danny van der Reis, EVP, Servicing and Asset Management, “his vast expertise and strong leadership skills will help us to achieve our strategic operations objectives at Arbor Realty Trust.” Previously, Mr. Marino spent 30 years at M&T Bank Corporation where he had been promoted over the years to Executive Vice President, Commercial Lending Services. His experience Read the full article…
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.
Chatter is dedicated to providing you with the practical research needed to be a successful multifamily investor. From our partnership with Chandan Economics to articles contributed from premier research firms, our goal is to keep you informed on all things multifamily.
The top metros attracting Millennial renters from other states are typically medium-sized with relatively fast-growing economies.
Whether a period of economic weakness is years away or just around the corner, the small balance multifamily sector is projected to remain healthy in 2019. Read our Q1 2019 Small Balance Multifamily Investment Trends Report for insights on the market.
Those considering investment in the residential arena of commercial real estate, should consider single-family rentals (SFRs). Here are some reasons why.
While higher shares of young adults move into apartment buildings annually, moving rates for this age group are in decline, keeping with the broader national trend.
As commercial real estate investors move further out on the yield spectrum, they are increasingly considering the single-family rental (SFR) asset class. Large portfolio transactions have made headlines in recent years, yet individual investors still own 80% of the SFR marketplace.
Young adults in multifamily properties are less likely to still be living with their parents compared to the overall young adult U.S. population, which includes those in owner-occupied homes and all rental housing.
A growing share of older renters is living alone, with small asset properties experiencing robust gains from this demand segment.
While a large share of millennials still lives with roommates, this age group is beginning to move out on their own or starting families as they age.
Smaller multifamily properties have grown their share of non-family households. On the other hand, large properties are appealing most to married couples. The share of renters living with roommates continues to rise across all apartment property types.
Las Vegas led the nation in rent growth in 2018, at 8.6% year-over-year. This strong performance was largely driven by strong population growth and a high concentration of prime-age workers. The addition of new supply to the market resulted in a slight uptick in the vacancy rate, but it remained among the lowest nationally.