Elevated mortgage interest rates and high home prices boosted demand for single-family rentals (SFR) last year, supporting the growth of rents in almost all of the 100 largest metropolitan areas. Pricing momentum, which averaged 4.5% nationally, was concentrated in affordable markets in the Northeast and Midwest, an analysis of Zillow’s Observed Rent Index data shows.
Increasingly, single-family rental (SFR) operators have been relying on build-to-rent (BTR) development to satisfy their inventory needs. The popularity of BTR communities made economies of scale possible for the SFR sector in the recovery after the 2007 housing crisis and continues to fill a housing need nationwide. Now, newly released U.S. Census Bureau data shows that SFR development activity remained robust even as its momentum slowed, moving the sector into a more stable equilibrium.
With political headwinds reshaping the corporate responsibility landscape, commercial real estate (CRE) leaders, policymakers, and academics recently gathered in New York City for the NYU Stern Chen Institute for Global Real Estate Finance’s 3rd Annual Symposium on Innovation & Sustainable Real Estate to discuss the future of sustainable real estate finance, investment, operations, and technology. In a series of panel discussions, industry leaders offered their perspectives on how sustainability is evolving in a new political environment and why green policies still make business sense.
Rental housing remains uniquely positioned for continued growth in an environment of economic volatility and political uncertainty, Dr. Sam Chandan, founding director of the C.H. Chen Institute for Global Real Estate Finance at the NYU Stern School of Business and founder of Chandan Economics, asserts in his video overview of Arbor’s Special Report Spring 2025.
Arbor’s Small Multifamily Investment Trends Report Q1 2025, developed in partnership with Chandan Economics, examines a key commercial real estate sector that consistently shows stability amid ongoing economic volatility. Small multifamily continues to show positive trends in key indicators, such as asset valuations, originations volume, and construction, signaling that the sector should continue to overpower headwinds as it builds on its ongoing momentum.
With construction activity continuing to vary according to market, newly released U.S. Census Bureau data reveals emerging trends in multifamily building permits issued and how supply dynamics are poised to impact rent pricing patterns in the nation’s top 100 markets.
The U.S. Department of Housing and Urban Development (HUD) recently announced that new Federal Housing Administration (FHA) rules designed to boost housing production are now in effect. The new rules bring more favorable debt service coverage ratios (DSCRs), loan-to-cost ratios (LTC), and loan-to-value (LTV) ratios on certain types of FHA multifamily loans, unlocking more proceeds to borrowers.
The U.S. multifamily sector finished 2024 with the wind at its sails, as the market settled into a more normalized cycle. Rental demand continued to be driven by solid wage growth and household formation, as well as high home prices leading many would-be-homebuyers to consider lifestyle renting.
At Arbor, we are committed to responsible and ethical business practices. That’s why we follow the ISS (Investor Stewardship Services) Environmental, Social, and Governance (ESG) standards. ISS is a leading provider of corporate governance and sustainability solutions. Their ESG standards are used by investors to assess and manage their ESG risks and opportunities.
By following the ISS ESG standards, we are demonstrating our commitment to:
We believe that following the ISS ESG standards is good for our business, our customers, and our community. It allows us to attract and retain top talent, build strong relationships with our customers, and operate in a sustainable and responsible manner.
We encourage our customers to learn more about the ISS ESG standards and how they are impacting the financial industry. You can find more information on the ISS website: https://www.issgovernance.com/esg/
Our ESG Report has been informed by the accounting standards published by the Sustainability Accounting Standards Board (SASB), and we have also identified the United Nations Sustainable Development Goals (SDGs) that we believe best align with our business activities and key focus areas.
Arbor is committed to continuous improvement of our risk management framework. We regularly review and update our framework to ensure that it reflects the latest best practices and that it is tailored to our specific risks.
That’s why we have implemented a comprehensive risk management framework that is aligned with best practices in corporate governance. Our framework includes:
We believe that our strong commitment to risk mitigation is a key differentiator for our company. It allows us to provide our customers with the confidence that their mortgages are safe and secure.
