Today’s renters are in it for the long haul. The Federal Reserve Bank of New York’s recently released 2025 SCE Housing Survey shows that the average renter thinks there is a two-in-three chance they will rent for the foreseeable future. With home prices and interest rates unfavorable to would-be homebuyers, we explore renters’ perceptions and how they could impact future rental housing demand.
Arbor’s Top Markets for Multifamily Investment Report Spring 2025, developed in partnership with Chandan Economics, is your roadmap to the best locations to deploy capital. Based on the findings of our exclusive Multifamily Opportunity Matrix, this in-depth analysis assesses economic strength and market capabilities to navigate evolving conditions of the top 50 largest U.S. metros.
Arbor’s data-driven articles and research reports empower multifamily and single-family rental investors and developers to make more profitable financial decisions.
The number of rental households climbed nearly 2% last year, as 848,000 more households became renters, an analysis of the U.S. Census Bureau’s Housing Vacancies and Homeownership Survey shows (Chart 1). Rental households also hit a new high of 45.3 million, accounting for more than half of all U.S. household growth in 2024. Weakening affordability, evolving lifestyle preferences, and a limited supply of quality housing all contributed to surging multifamily and single-family rental (SFR) demand.
Solar panel installations, which skyrocketed in the U.S. over the last half-century, are projected to double to 10 million in just six years. While installations soared in all types of residences, owner-occupied properties significantly outpaced rentals. However, the evolving economics of solar power may be approaching a tipping point for single-family rental (SFR) operators looking for a differentiator.
Even amid ongoing economic volatility, SFR continues to be a well-positioned asset class that is expected to follow stable growth patterns.
This spring, Arbor is doubling down on our commitment to aspiring commercial real estate students through our partnership with Project Destined by helping to launch the first-ever Women’s Fellowship and with our participation in the Project Destined Bridge Program.
Amid ongoing macroeconomic uncertainty, the small multifamily sector remains favorably positioned for stability as the structural need for affordable housing in the U.S. has supported the strength of the sector’s demand profile.
Arbor remains committed to the responsible environmental management of our operations as well as providing opportunities for our borrowers to improve their own footprints. We are an active participant in our agency partners,’ Fannie Mae and Freddie Mac, “green” lending programs, supporting borrowers with funding to make improvements to their properties that help reduce energy and water consumption and lower utility costs to tenants. See success stories from these programs on our Success Stories page.
In our own offices, we are working to identify ways to reduce consumption and our environmental footprint. This exploration involves an analysis of our workspaces and business practices, our vendor and counterparty practices, and the carbon footprint of our lending practices. We believe that the key to keeping our focus on sustainability is an ongoing investment in our people, continuous and broad-based education, and a flexible approach to our policies and processes.
Arbor has continued its domestic and international tree planting program, aimed at supporting two highly successful reforestation efforts through a commitment to plant a tree on behalf of Arbor’s customers for each loan we close. This initiative provides a valuable opportunity to connect with our clients while actively contributing to a critically important environmental cause. To date, in recognition of our closed transactions, and our commitment to these critical organizations, Arbor has financed the planting of 17,000 trees domestically and 3,400 trees in the State of Israel.
In our workspaces across the United States, Arbor has installed low-flow water systems in bathrooms, energy-efficient LED lighting, daylight and occupancy sensors in all new office buildouts and retrofits, and hands-free faucets. All equipment is set to energy reduction modes, including computer and copier equipment. Arbor shows preference for green leased buildings for one-off offices and purchases ENERGY STAR appliances when available.
Arbor maintains effective recycling processes (supplies, electronics, paper files), where available, to increase landfill diversion and to be in compliance with all building rules and regulations. We utilize e-signature and electronic invoices and statements and encourage digital-only subscriptions and eco-friendly packaging solutions.
In 2024 Arbor conducted a Greenhouse Gas (GHG) Inventory though a third-party partner. The inventory covered scopes 1 and 2 emissions of office spaces under the company’s operational control during the year 2023. In 2025, we expanded the inventory to include scope 3 emissions. This inventory will be Arbor’s baseline year of emissions and will allow the company to track future emissions and create goals and plans for reductions.
Many of the practices we already have in place support the reduction of our carbon footprint, such as our energy management initiatives, which reduce our Scope 2 emissions. We also have a telecommuting policy that allows our employees to work from home utilizing video conferencing for calls. Employees also have access to our Qualified Transportation Expense Program (QTE), which allows employees to open and contribute to a pre-tax account for eligible transportation funds, including public transportation. Both options incentivize reduced use of fossil-fuel transportation, therefore lowering our carbon footprint.
Arbor is in full compliance with environmental regulations in all our office locations and requires the same of the properties on which it lends. We are actively preparing for current and upcoming regulatory requirements for GHG emissions and climate-related disclosures at the state level.