The pandemic-era federal and state eviction moratoriums put extreme financial pressure on many in the affordable housing sector. With that issue stabilized and with the recent drop in rates, “many borrowers are now finding that the time is now right to recapitalize or close new affordable housing loans that many borrowers had understandably delayed,” said Arthanais Williams, Managing Director of Affordable Housing at Arbor Realty Trust.
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.
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.
Although they remain near historical lows, apartment vacancy rates in the U.S. have begun to climb. However, this recent reversal may be a temporary trend, driven by renter satisfaction and a slowdown in the pace of new construction.
These large metros are growing the fastest; Fannie Mae reports on a rebounding economy; Fed votes to keep interest rates unchanged; private capital ramps up lending; and more in this weekly roundup of multifamily news items.
Lease renewals hit an all-time high; how crowdfunding has transformed real estate investing; renters demand storage; and more in this edition of the ALEX Chatter’s weekly multifamily roundup.
U.S. multifamily rents increased this August to an average of $1,200 — up $3 from July — which represents the eighth month in a row a new record high has been set.
As we enter the fall buying season, it’s useful to look at pricing in major multifamily markets through the first half of the year. Not only in the priciest markets, but also in markets that may represent higher yield opportunities.
Spy planes are tracking apartment construction; 10 spots with Class B rent growth premiums; apartment rents break record for 8th straight month; cap rate trends; and more in this week’s multifamily news roundup.
Lenders rush to apartments; NYC’s new crop of tallest buildings; Freddie Mac announces ‘green’ finance initiative; five top construction markets and more in this week’s roundup.