The small multifamily sub-sector ended 2022 on a high note with originations falling just behind 2021’s peak. As economic storm clouds continue circling, small multifamily appears fortified from any reverberations that may result.
Investor Purchases, New Starts, and Tenant Performance Show Strength as Cap Rates Rise Arbor’s Single-Family Rental Investment Trends Report Q1 2023, developed in partnership with Chandan Economics, explores a growing multifamily sector with a unique ability to rise above macroeconomic headwinds. Last year, investors purchased more single-family rental (SFR) units than in 2021 as uncertainty rippled through the commercial real estate industry. Construction in the sector also ramped up in 2022, with starts reaching all-time highs by unit count and market share. This upward trend, fueled by significant structural support, sets SFR apart from many other commercial real estate sectors. Complete the form to instantly access the full report!
Arbor’s Single-Family Rental Investment Trends Report Q1 2023, developed in partnership with Chandan Economics, explores a growing multifamily sector with a unique ability to rise above macroeconomic headwinds. Last year, investors purchased more single-family rental (SFR) units than in 2021 as uncertainty rippled through the commercial real estate industry. Construction in the sector also ramped up in 2022, with starts reaching all-time highs by unit count and market share. This upward trend, fueled by significant structural support, sets SFR apart from many other commercial real estate sectors.
When apartment investors consider locations for capital deployment, growth potential is a top-of-mind concern. On a local level, population changes can influence everything from rent growth to occupancy to future property values. County-level positive net migration and natural population growth trends, identified in an analysis of U.S. Census Bureau data, reveal the counties where demographic tailwinds make a compelling case for real estate investment.
Investor Purchases, New Starts, and Tenant Performance Show Strength as Cap Rates Rise Arbor’s Single-Family Rental Investment Trends Report Q1 2023, developed in partnership with Chandan Economics, explores a growing multifamily sector with a unique ability to rise above macroeconomic headwinds. Last year, investors purchased more single-family rental (SFR) units than in 2021 as uncertainty rippled through the commercial real estate industry. Construction in the sector also ramped up in 2022, with starts reaching all-time highs by unit count and market share. This upward trend, fueled by significant structural support, sets SFR apart from many other commercial real estate sectors. Complete the form to instantly access the full report!
Arbor’s latest Affordable Housing Trends Report, developed in partnership with Chandan Economics, offers a wide-ranging lens into the complex, though critically important, affordable and workforce housing sectors.
In this video, Sam Chandan, professor of finance and Director of the Chen Institute for Global Real Estate Finance at the NYU Stern School of Business, discusses the key findings of Arbor’s Affordable Housing Trends Report Spring 2023, developed in partnership with Chandan Economics. He adds context to the Federal, state, and local housing policy trends impacting the future of the affordable sector, which, he notes, continues to have the highest development prospects of any residential subtype.
The natural apartment filtering process of new supply declining in quality and value as it ages has provided low-income renters with access to more affordable housing options. The Great Recession, however, caused a break in the filtering pattern, leaving a shortage of workforce housing supply during this recovery.
Renter income growth In small multifamily properties was slightly above the national average, while large multifamily households saw market-leading gains.
Small multifamily rents have been growing faster in metro areas with rent levels below the national average. This phenomenon has, by and large, also been true for the large multifamily asset class.
Four major California cities were the most expensive areas in the nation for small multifamily rentals, reflecting the state’s ongoing affordability crisis.
Small multifamily rent growth is fueled by the asset class’ proximity to job centers, larger unit sizes and relative affordability to other rental property types.
Small multifamily properties are growing the quickest as a share of rental inventory outside of the largest U.S. metro markets.
The Charlotte multifamily market has been one of the top performers in 2019, with strong rent growth and record-high investment volume. The metro’s growing technology sector has also boosted the local economy and job market.
This report takes an in-depth look at small multifamily finance and investment activity in the metro over the last year. It also addresses what’s ahead for the sector due to factors like rent regulation, the current economic cycle and demographic changes.
The Charlotte multifamily market is likely to remain attractive to investors due to its low taxes, diverse employers, affordable housing and other factors.
While the majority of U.S. rentals are located in a handful of large metros, small multifamily is growing the quickest in smaller U.S. metros.