The U.S. multifamily market continued to show signs of slowing at the end of 2023, although demand remained robust, with high home prices leading younger generations of higher-income households to choose renting over homeownership.
Generation Renter: Why the Multifamily Pipeline is So Promising
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After the historic rental housing bull run of the 2010s and the early 2020s, the open question is: can it maintain this momentum over the next cycle? While the answer is highly debatable, trends in demographics, preferences, and market conditions show the presence of significant tailwinds that will continue to propel investment prospects forward. Chandan Economics, Arbor’s research partner, analyzed historical data from the U.S. Census Bureau to project how Generation Z could impact the future of the rental housing market.
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Utah Attracts Growing Number of Young, High-Income Renters
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Utah is quietly having a moment. Already a national leader in natural population increase and state-level population growth, its nexus of metros, including Salt Lake City, Provo, and Ogden, has attracted increasing numbers of young, high-income renters due to its affordability, robust labor market, and exciting outdoor activities.
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Single-Family Rental Investment Snapshot — Q1 2023
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SFR’s significant structural support has enabled it to take noticeable steps forward, while other commercial property types have been merely treading water.
![Single-Family Rental Investment Snapshot — Q1 2023](https://arbor.com/wp-content/uploads/2023/06/Infographic-2023_Q1-SFR-Snapshot_blog-header.jpg)
The Top Five Tightest Rental Markets in the U.S.
![Upscale Condominiums](https://arbor.com/wp-content/uploads/2023/06/GettyImages-171211444-scaled.jpg)
Most rental markets from New York City to San Francisco are tight right now, but are some feeling the pinch more than others? To answer this question, Chandan Economics created a matrix that analyzes rent growth and rental occupancy rates to find out which metro markets have the highest demand for rental housing.
![Upscale Condominiums](https://arbor.com/wp-content/uploads/2023/06/GettyImages-171211444-scaled.jpg)
Small Multifamily Investment Snapshot — Q1 2023
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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.
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Single-Family Rental Investment Trends Report Q1 2023
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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.
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Top Counties for Demographic Tailwinds
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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.
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Affordable Housing Market Snapshot — Spring 2023
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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.
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Video Analysis: Arbor’s Affordable Housing Trends Report Spring 2023
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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.
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Small Multifamily Investment Trends Report Q1 2023
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The small multifamily subsector, strengthened by sound structural fundamentals, is well-positioned to face distress due to interest-rate pressure. Even though pricing has slid lower and cap rates have risen, it should remain resilient in the coming quarters. A deep dive into a uniquely positioned subsector, Arbor’s Small Multifamily Investment Trends Report Q1 2023, developed in partnership with Chandan Economics, analyzes the competing headwinds and tailwinds influencing investment performance.
![Small Multifamily Investment Report Q1 2023](https://arbor.com/wp-content/uploads/2023/05/Website-2023-Q1-Chandan-Quarterly-Reports-Small-Multifamily-Report-Articles-Index-scaled.jpg)