A nationwide housing shortage of rental homes, coupled with the rising costs of homeownership, has fueled the popularity of high-quality, affordable single-family rental (SFR)/build-to-rent (BTR) homes. In recent years, SFR/BTR construction starts have consistently reached new highs. In today’s economic environment, where mortgage payments are more expensive than rent payments in many markets, build-to-rent loans are a forward-thinking investment strategy.
The SFR sector is well-positioned to limit distress through the challenges of the current moment while advancing its standing within the single-family housing market for the long term.
Following a banner year in 2022, the U.S. multifamily market held steady during 2023. Arbor provided research and insights into our markets throughout the year. Here’s a look at our top Arbor research articles from 2023, in case you missed them.
Miami — a market with an attractive climate, urban amenities, and quality transportation options — has seen intense post-pandemic population growth. While its resurgence has been celebrated by many, Miami’s success has come at the cost of weakening rental affordability in the city.
UNIONDALE, NEW YORK – December 18, 2023 – Arbor Realty Trust (NYSE: ABR) has ranked #9 in the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) Top Multifamily Lender in Initial Endorsements list for the fiscal year ending September 30, 2023. In partnership with borrowers, Arbor posted over $230M in total FHA/HUD origination volume as a Multifamily Accelerated Processing (MAP) Lender. This achievement represents Arbor’s first Top 10 appearance on this list. The result is representative of Arbor’s strong core commitment to agency origination. “FHA loan programs offer high-quality multifamily financing solutions across all rate environments,” said Arbor COO John Caulfield. “Our originators, underwriters and asset managers are well-familiar with HUD’s expansive multifamily product set, and we appreciate the relationships we’ve built over the years and the collaborative growth that this result demonstrates.” Arbor also ranked #14 on HUD’s Top FHA Multifamily Lender by Firm Commitments list, jumping from #19 in 2020. This marks Arbor’s fifth year in the Top 20 by Firm Commitments. About Arbor Arbor Realty Trust, Inc. (NYSE: ABR) is a nationwide real estate investment Read the full article…
For low-income renters, affordability is a deeply rooted issue. Since 2010, rental affordability has consistently and severely eroded in the U.S., with average rents growing faster annually than average incomes more than 72% of the time. As renters face increased inflationary pressures, state and local governments are exploring a mix of creative and tried-and-true solutions to expand the affordable housing supply.
As the single-family rental (SFR) investment market matures, a clearer picture of its typical renter has begun to come into focus. On December 5 at IMN’s 11th Annual Single Family Rental Forum (West), a group of industry leaders, including Arbor’s Tres Seippel, Director, Construction Management, explored how demographic trends have influenced the rise in popularity of single-family rental homes.
Q2 2020 Small Multifamily Investment Trends Report Small Multifamily Weathers the Storm TAKE THE PDF WITH YOU Table of Contents Key Findings: Small multifamily prices fell 5.6% from a year ago. Cap rates held steady as risk-free rates fell. Small multifamily LTVs dropped by 360 bps from the prior quarter. Table of Contents: State of the Multifamily Market Lending Volume of Multifamily Loans Arbor Small Multifamily Price Index Cap Rates & Spreads Leverage and Debt Yields Multifamily Market Outlook Key Findings: Small multifamily prices fell 5.6% from a year ago. Cap rates held steady as risk-free rates fell. Small multifamily LTVs dropped by 360 bps from the prior quarter. State of the Multifamily Market When the Nobel Committee meets this year to decide who has made the most meaningful contributions to the field of economics, they might as well give the honor to the epidemiologists. Right now, those experts are providing key indicators of the future of markets throughout the world shaped by the course of the COVID-19 pandemic. Disorganized and inconsistent reopenings in the U.S. economy have fanned Read the full article…
Arbor Realty Trust has created the Arbor Small Multifamily Price Index (ASMPI), in partnership with Chandan Economics, to provide new and important data on the small multifamily market that can help shed light on potential investment opportunities in the sector.
Millennial STEAM workers’ preference for small and large multifamily appears to be explained less by absolute income level differences, and more by a variety of personal preferences.
Amenity-rich large multifamily is increasingly geared toward high-skill jobs within the urban core, while the more dispersed and affordable small multifamily cater to a wider mix of workers.
Annualized figures through Q2 2019 totaled $58.5 billion in lending volume, representing a 7.9% gain from 2018. Here’s a quick look at the finance and investment benchmarks for Q2 2019.
Small balance multifamily lending volume in the first half of 2019 totaled $58.5 billion on an annualized basis, representing a 7.9% gain from 2018’s total. Read our Q2 2019 Small Balance Multifamily Investment Trends Report for more insights on the sector.
Adjusted estimates of 2018 lending volume of small balance loans jumped to $53.1 billion, the highest level of activity in Chandan Economics’ post-financial crisis estimates. Initial readings for the first quarter of 2019 totaled an annualized $48.7 billion. Here’s a quick look at the small balance multifamily finance and investment benchmarks for Q1 2019.
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.
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.
Small balance multifamily loan volume, which includes loans between $1 million and $5 million, reached $51.7 billion in 2018, the highest level of activity in Chandan Economics’ post-financial crisis estimates. Here’s a quick look at the small balance multifamily finance and investment benchmarks for Q4 2018.
Small asset multifamily has displayed sound price fundamentals, with year-end 2017 average rent growth maintaining the upward trend of the previous year, according to the latest Census data. Small apartment buildings offer a unique blend of urban-core proximity and relatively larger apartment unit sizes.