As decelerating construction supports rent growth in many markets, 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.
In times of volatility, it pays to have support from a team willing to go the extra mile. Whether it’s meeting tight deadlines or ensuring all requirements are met, Arbor’s Federal Housing Administration (FHA) Underwriting department remains committed to helping borrowers secure loans that expand rental housing opportunities for Americans.
The U.S. multifamily market held steady in a more normalized cycle during the third quarter of 2024. Rental demand remained strong, while new leaders emerged among the top markets for rent growth.
Networking and attending industry conferences to learn trends and insights are among the most advantageous ways young commercial real estate finance professionals can advance in their careers. This year, Gabriel Rondon, Analyst, Structured Asset Management at Arbor and a CRE Finance Council (CREFC) Young Professionals Network member, was selected as one of the network’s ambassadors at CREFC Miami, giving him a golden opportunity to expand his professional horizons.
Although the single-family rental (SFR) sector’s profile expanded after the 2007-2010 subprime mortgage crisis, the number of its households slid between 2016 and 2020 as many rentals transitioned into owner-occupied homes. Following a period of pandemic-related uncertainty, SFR has returned to growth mode, increasing its number of households for the second time in three years.
Arbor’s Special Report Spring 2025, developed in partnership with Chandan Economics, covers the state of the U.S. rental housing market on the cusp of a new cycle. After a year of steady growth, favorable trends put wind in the sector’s sails, giving rise to budding optimism. With the economic landscape shifting, the rental housing market’s resilient performance in 2023 and 2024 provides a solid foundation for continued growth.
Arbor remains committed to the responsible environmental management of our operations. We are always striving to improve upon the ways in which we can minimize the impact that our business has on the environment. 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 its 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, allowing for “rest” during non-peak hours and double-sided copying is encouraged. Arbor shows preference to 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.
In its 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, allowing for “rest” during non-peak hours and double-sided copying is encouraged. Arbor shows preference to green leased buildings for one-off offices and purchases energy star appliances when available.
Arbor currently has a robust telecommuting policy greatly reducing our employees’ use of fossil fuels, supports video conferencing and conference calling as an alternative to travel, utilizes e-signature and electronic invoices and statements, and encourages digital-only subscriptions and eco-friendly packaging solutions. We have also begun investigating our scope 1, 2, and 3 carbon footprint to see where we can be more mindful and impactful in our efforts and business operations.
Arbor is in full compliance with environmental regulations in all of its office locations and requires the same of the properties on which it lends.