The rental housing sector is well-insulated but not immune to market forces even as the economy edges into correction territory, Arbor Chairman and CEO Ivan Kaufman and Chandan Economics Founder Sam Chandan demonstrate in the findings of Arbor’s Special Report Spring 2023.

Renters 30 years of age and under, who now make up slightly more than one-quarter of the heads of households of rental units, are bolstering housing demand in markets known for their affordability and livability.

Driven by cyclical, demographic, and technological factors, the single-family rental (SFR) sector has matured over the past decade. The once-fragmented industry has both coalesced and professionalized. While the evolution of the SFR sector has been explored at length, a clear picture of its core set of tenants is just now coming into focus.

The highly anticipated transition from LIBOR® to SOFR, which goes into effect after June 30, 2023, will make SOFR the standard benchmark rate across a wide range of financial products. Although the financial community is expecting a smooth transition, there are notable differences between the two rates that will influence multifamily lending.

In the last quarter of 2022, the multifamily sector continues to thrive despite ongoing economic uncertainty. As the investment community looks ahead to 2023, Arbor’s Managing Director, Senior Production Officer Jean-Laurent Pouliot discusses what’s in store for multifamily and how Arbor is positioned to help investors continue to exceed expectations next year.

With the latest release of the Consumer Price Index (CPI) report from the U.S. Bureau of Labor Statistics (BLS), policymakers and consumers alike found signs of inflation relief for the first time in a long time. Despite the CPI’s overall improvement in October, one notable price category is still seeing rising inflation: rent of primary residence. The annual growth rate for the rent component of the CPI has now increased for 15 consecutive months.