Did you know that at the same time many renters navigate a housing market with limited affordable options, new apartment development continues to be held back by World War II-era zoning restrictions? In many localities, regulations introduced in the mid-1940s have choked the multifamily pipeline for decades, creating a “missing middle” that leaves low-income renters in a lurch.
Increasingly, single-family rental (SFR) operators have been relying on build-to-rent (BTR) development to bridge the housing gap, accelerating the momentum of SFR construction through 2024’s halfway point. Both total SFR/BTR housing starts and BTR’s share of all single-family housing starts reached new record highs in the second quarter, setting the stage for another banner year.
The small multifamily outlook continues to brighten as more signs indicate a normalization has already begun. In the second quarter, originations activity and borrowing conditions improved as completions sat at a five-decade high, Arbor’s Small Multifamily Investment Trends Report Q3 2024, developed in partnership with Chandan Economics, shows. While the subsector’s fundamentals are trending up, it still has room for growth when interest rate relief arrives.
While the overall pace of new multifamily permitting per capita in the U.S. slowed recently, it has picked up momentum in pockets of the country, especially the Midwest. In the first two quarters of 2024, Madison, WI, Columbus, OH, and Omaha, NE, were among the major metropolitan markets posting solid permitting gains, another sign of multifamily’s strength in all cycles.
The U.S. multifamily market followed the quick pandemic contraction with a strong recovery, and has now normalized into a more stable cycle. Demand remained strong across the country, with a wide variety of markets among the leaders for rent growth.
Did you know that more U.S. renters now spend over 30% of their income on housing and utilities than at any other time on record? Limited affordable housing options not only increase the rent burdens of low-income tenants but disrupt physical and mental health, underscoring the need for the creation and preservation of more affordable housing units nationwide. Quality affordable housing adds stability to communities and supports healthier environments that can significantly improve well-being.
After skyrocketing through a boom cycle over the past two years, the U.S. multifamily market settled into a cycle of stabilization in the first half of 2024. Rents held steady, occupancy increased, and vacancy rates remained in line with historical averages, while investor sentiment remained positive.
Single-family rental (SFR) CMBS issuance saw a sizeable pickup through the first half of 2024, with $4.2 billion in new issuance, placing it on pace to at least triple last year’s annual total.
The U.S. multifamily market continued to expand during the third quarter of 2022, although at a more modest pace.
Small multifamily prices continued to press higher at a double-digit annual rate in the second quarter of 2022 and cap rates sank to new all-time lows.
The U.S. multifamily market posted a historic showing in the second quarter of 2022. Rent and price growth remained at all-time highs, while vacancy and cap rates improved to the lowest levels since the onset of the pandemic. Among the nation’s top markets, the Sunbelt region continued to shine.
The U.S. multifamily posted a historic showing in the second quarter of 2022. Among nation’s top markets for rent growth, the Sunbelt markets continued to shine.
All else equal, small multifamily remains resilient heading into 2022’s warm weather months. Here’s a look at the latest small multifamily investment benchmarks.
The U.S. multifamily market followed last year’s record-setting performance with another strong showing. Rent growth remained strong, and the historically-low vacancy rate continued to tighten. Record-breaking sales activity continued through the first three months of 2022, and cap rates remained at historic lows.
Continuing on last year’s record-setting pace, the U.S. multifamily market posted another strong showing in the first quarter of 2022. Rent growth remained strong, climbing 15.6% year-over-year, higher than the 12.7% increase for all of 2021. As has been the case over the last two years, Sunbelt markets stood out among the nation’s top performers.
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.
At the Mortgage Bankers Association’s (MBA) 2022 Commercial/Multifamily Finance Convention and Expo) in San Diego, CA, in mid-February, the following three topics were discussed by presenters and attendees and reflect what’s top-of-mind for the industry.
The SFR sector has historically attracted renters who seek a more spacious, suburban lifestyle but are not looking to buy for various reasons. While the concept of SFR is not new, it has gained more attention in the last decade as institutional involvement has increased following the Global Financial Crisis (GFC).