The outlook for the single-family rental (SFR) sector continues to be upbeat even as rent growth cools nationally. Build-to-rent (BTR) communities have been expanding their footholds in neighborhoods across the U.S. These starts hit a new record high as rental demand has risen from would-be home buyers priced out of ownership by high interest rates.
Due to increased demand for Single-family rental and build-to-rent financing, your lender’s level of expertise matters even more now. Arbor, which has more than 30 years of experience serving multifamily borrowers, has a high repeat sponsor rate that is a testament to our best-in-class service.
The surging U.S. multifamily market showed signs of slowing during Q4 2022. Rent growth remained high, although lower than the record-breaking increases last year.
Because single-family rental (SFR) properties tend to be located in the suburbs and away from public transportation hubs, the typical tenant drives to work. As a result, an area’s typical commuting time is a factor that is often weighed heavily by residents — impacting rental demand and pricing.
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.
Positive rent reporting, a new piece of Fannie Mae’s mission-driven lending agenda, is a leap forward for the U.S. rental housing market amid an ongoing affordability crisis. This initiative, recently launched in a pilot program in Chicago, has significant upside potential for not only tenants but landlords, owners, and multifamily borrowers as well.
Passed in the 11th hour of the 117th Congress, the $1.7 trillion federal spending package prioritizes the expansion of affordable housing in 2023 through increased funding for targeted programs.
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.
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).
Multifamily rent growth for the U.S. overall was up 12.5% during 2021, the largest annual gain since REIS began tracking data in 1980. As was the case throughout the year, Florida markets were found up and down the list of top rent growth markets.
Despite a slow start to 2021, the U.S. multifamily market posted a record-breaking year. Rent growth was the highest since REIS began tracking data in 1980, as vacancy rates continued their downward trend. Investment sales also shattered previous records, while cap rates remained near historic lows and below those of other major property types.
The single-family rental sector (SFR) enjoyed its best year on record in 2021, as demographic and pandemic-related forces combined with growing investment enthusiasm. This report provides an in-depth look at the SFR market with exclusive data and analysis on its performance.
Even as the Omicron variant evades our collective vaccine protection and prompts recalibrated expectations for the new year, our economic sensitivity to the viral threat is markedly less than it was in spring 2020. A potential outcome is the pandemic will gradually fade into a highly contagious though comparatively manageable endemic through this upcoming year and beyond.
The initial year-end 2021 estimate of new multifamily lending volume on loans with original balances between $1 million and $7.5 million1 — including loans for apartment building sales and refinancing — surged to $85.4 billion. The estimate is a substantial step-up from previous 2021 annualized estimates, reflecting a sizable increase in originations at the end of the third quarter through the end of the year.