In a year when inflation and elevated interest rates weakened affordability, the rental housing sector strengthened and expanded. An analysis of newly released U.S. Census Bureau Housing Vacancies and Homeownership data shows the number of rental households climbed in 2023.
The first quarter opens a new chapter for the small multifamily market after a year where the subsector demonstrated its strength and resiliency amid stiff economic headwinds.
Over the last decade, single-family rental (SFR) operators have been increasingly focusing on build-to-rent (BTR) development as the needs and preferences of renters have shifted. As explored in the latest Arbor Single-Family Rental Investment Trends Report, SFR/BTR development has surged at a time when new, for-sale, single-family home starts have declined.
Less than six months since its launch, Arbor Private Construction (APC) already has a robust pipeline of executable transactions, a strong sign that Arbor’s Chairman and CEO Ivan Kaufman correctly anticipated and identified changes in the construction lending marketplace when he introduced a new proprietary financing product last fall.
When people think of tech hubs, they often imagine a familiar mix of standards such as Silicon Valley, Boston, and New York, or recent-growth markets like Austin and Miami. However, Northern Virginia is quickly becoming a bona fide technology hub in its own right.
Multifamily rent growth in the U.S. continued to be distributed throughout a variety of markets, which contrasted with the previous two years when Sun Belt markets dominated the list.
The U.S. multifamily market held steady during the third quarter of 2023, as high mortgage rates and a lack of inventory in the housing market continued to drive rental demand.
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.
Multifamily rent growth in the U.S. was spread throughout a diverse selection of markets during the second quarter of 2023, a change from the last several quarters when Sun Belt markets dominated the list.
The U.S. multifamily market continued to slow during the second quarter of 2023. Rent growth retreated from the skyrocketing pace of the last two years, although still remained positive alongside continued high rental demand.
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.