From California to Maui, the frequency and scope of wildfire events are rising, causing insurance markets and public agencies to reevaluate property in areas at risk for catastrophic damage. As a result, rental housing providers are seeing greater limitations to coverage, higher premium prices, and, in some cases, a total absence of viable private insurance — a trend detailed in the NMHC 2023 State of Multifamily Risk Survey and Report. This troubling new trend has placed many rental housing operators in a bind where they must simultaneously contend with the declining availability and affordability of insurance options.
In the last three years, multifamily construction has reached levels not seen since the 1980s, supported, in part, by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) loans. If you are exploring the acquisition, refinancing, rehabilitation, or new construction of conventional multifamily, affordable housing, seniors housing, or a healthcare facility, consider FHA multifamily construction loans, a stable financing option with excellent terms and many other attractive advantages.
More than halfway through 2023, the single-family rental (SFR) sector continues to demonstrate why it deserves the attention of multifamily investors.
While the single-family rental (SFR) sector’s rent growth averages have retreated from record highs, structural tailwinds are keeping price growth positive — both nationally and in major SFR markets. In this research brief, Chandan Economics and Arbor Realty Trust analyze DBRS Morningstar data, which covers the top 20 MSAs by SFR activity, to discover the metropolitan areas where SFR rent growth is the hottest right now.
Fannie Mae recently announced that its Small Loan cap has increased from $6 million to $9 million for all loans committed as of August 22, 2023. Multifamily borrowers and lenders have praised the change to the Fannie Mae Small Loans program, which will encourage greater investment in a rapidly growing sector where demand remains high despite market volatility.
While macroeconomic headwinds may not recede soon, tenant dependability, the core strength of small multifamily, has proven to be a powerful antidote to financial market storms.
As Baby Boomers reach retirement age, their evolving geographic preferences are strengthening housing markets and local economies in new locations, which feature attractive climates, relative affordability, and ample outdoor activities. With swelling populations of senior citizens, our top five emerging metropolitan areas for retiree relocation are fertile ground for multifamily real estate investment.
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Arbor’s roots are in small multifamily, and Chatter is your source for small multifamily news, research and insight. With nearly a third of all renters calling a property with between 5 and 50 units home, we’re dedicated to keeping you informed on the best practices for investing, financing and running smaller apartment communities.
Los Angeles has been a standout market for small balance multifamily investment throughout the current economic cycle. Cap rates have remained below national trends and investor confidence in the sector remains strong. Despite higher risk appetites among borrowers, lenders remain cautious as loan-to-value ratios (LTVs) have moderated. Read our 2018 Los Angeles Small Balance Multifamily Investment Trends Report for more insights on the region’s multifamily market.
Join Arbor and Freddie Mac for our complimentary live webinar on Tuesday, Dec. 4 at 2:00 p.m. EST, hosted by Los Angeles Business Journal, to learn about the small balance finance and investment opportunities in L.A.!
View our webinar on finance and investment opportunities in the small multifamily space! Moderated by economist Sam Chandan, this complimentary on-demand webinar from Arbor and Fannie Mae will present actionable ways for small multifamily owners and operators to optimize and expand their portfolios.
Compared to other rental properties, average rents in small asset multifamily vary less by property age, while rents for prewar buildings are going toe-to-toe with newer construction.
Here’s a quick look at the small balance multifamily finance and investment benchmarks for Q2 2018.
Millennial students looking for off-campus accommodations in university towns rent more frequently in small apartment buildings, and at higher rates of apartment sharing.
Strong economic growth, rising interest rates, and exceptionally tight labor markets contributed to small balance lending volume reaching an annualized rate of $47.0 billion through the first half of 2018, down 5.8% from last year.
Small apartment buildings comprise the largest share of workforce housing demand within the top 20 metros, while single-family rentals dominate the next 30.
Workforce rental housing demand has increased the most in the smaller metros where apartment properties, both small and large, are increasing their shares of this demand segment.
Data on the extent of housing-cost burden shows that relatively fewer households in small apartment properties are impacted severely by rental expenses.