Articles

SFR East 2024: How Economics and Demographics Shape the Rental Market

IMN’s Single Family Rental Forum (East), the cornerstone gathering of the SFR industry, concluded on May 22, 2024, in Miami, FL. Over three days, 1,800 attendees listened to more than 280 speakers discuss all angles of the SFR industry. On the first day of the conference, Arbor’s Tres Seippel, Director, Construction Management, participated in a wide-ranging panel discussion examining economic and demographic forces influencing SFR and build-to-rent (BTR), which also featured Rick Dalton, President of the Dalton Group, Domonic Purviance of the Federal Reserve Bank of Atlanta, Wade McGuinn, CEO of McGuinn Hybrid Homes, and Heather Williams, VP at Willow Bridge Property Company.

Articles

Affordable Housing Market Snapshot — May 2024

As housing costs spiral, rental affordability has become a more urgent issue, burdening a greater number of Americans. With more funding on the way, policymakers and private market advocates are pressing ahead with plans to add units to an increasingly tight housing market.

Articles

The Probability Renters Will Keep Renting Hits Record High

The average renter thinks there is a three-in-five chance they will still be in the rental market in 2027, according to the New York Federal Reserve’s recently released 2024 SCE Housing Survey. Compared to last year, the probability of the average renter not becoming a homeowner in the next three years was up 4.3 percentage points, reaching its highest mark since the study began in 2015.

Current Reports

Small Multifamily Investment Trends Report Q2 2024

Small multifamily’s performance continues to conform to pre-pandemic norms typically seen before the historic boom years of 2021 and 2022. In the first quarter of 2024, cap rates and asset prices both improved quarter-over-quarter, Arbor’s Small Multifamily Investment Trends Report Q2 2024, developed in partnership with Chandan Economics, has found. The subsector’s fundamental strength will support steady growth amid tight credit conditions until interest rate relief invites increased investment activity.

Analysis

U.S. Multifamily Market Snapshot — May 2024

Key fundamentals of the U.S. multifamily remained strong to start 2024. Despite fears of oversupply, rent growth remained stable and vacancy rates remained near historical lows.

Articles

Arbor Marketing Campaign Wins Two Awards at Industry Gala

For more than 30 years, Arbor has been committed to building strong bonds with clients that lead to mutual success. This philosophy is at the heart of a unique Arbor marketing campaign, The Art of Growing Financial Partnerships, which received two awards at the 30th Annual Financial Communications Society (FCS) Portfolio Awards Gala in New York City on May 2. The campaign, which was featured in two private jet terminals, used original stained-glass pieces to build brand awareness among high-net-worth travelers.

Articles

Top SFR Annual Rent Growth Markets

Even as rents retreated elsewhere, single-family rentals (SFR) have continued to outperform all other housing sub-types, exceeding the all-property type national average in 17 consecutive months through February 2024, according to Zillow’s Observed Rent Index (ZORI). Annual SFR rent growth has seen substantial gains in many metropolitan areas since national rent growth peaked in March 2022. In this deep dive, the Chandan Economics and Arbor Realty Trust research teams pinpoint the metropolitan areas where SFR rents are rising the fastest.

General: 800.ARBOR.10

FREDDIE MAC

Credit Building

Arbor is working to make the industry more equitable for everyone. This includes establishing new ways to improve economic mobility and narrow the wealth gap renters may face today. There are 44+ million renter households in the U.S., but less than 10% of on-time rents are reported to credit bureaus. Overall, renters have much lower credit scores than homeowners and some renters have no score at all (i.e., “credit invisible”). To address these disparities, Freddie Mac will incentivize borrowers to report on-time rents through credit-reporting servicers, such as Esusu Financial Inc. Esusu’s platform enables reporting on-time rent payments to the three major credit bureaus, helping build renters’ credit scores.

Benefits for Renters
  • Establish credit scores for renters who are currently “credit invisible” and gives them the ability to improve credit scores for those with existing records.
  • A stronger credit score may enable renters to access diverse financing, obtain financing with lower interest rates, avoid unbreakable debt traps and qualify for future mortgages.
  • Only on-time rental payments are reported to the credit bureaus; renters are automatically unenrolled with a late or missed payment.
Benefits for Borrowers
  • Improve property collections – rent reporting motivates residents to make on- time payments.
  • Improve marketability and reduce turnover – 2 out of 3 surveyed renters would favor a property that offers these services.
  • Improve net operating income – more stable collections and lower turnover mean a better bottom line
Rent Reporting – How Esusu Works With Borrowers
  • Comprehensive Reporting: Esusu reports on-time rent payments to all three major credit bureaus
  • Immediate Impact: Esusu’s ability to report up to 24 months of historical payments means that some renters’ credit scores will increase immediately
  • Ease of Reporting: Esusu’s software links to existing property management software; this means no added work for borrowers or property managers to enroll renters
  • Impact Visibility: Borrowers receive feedback on property-level credit building through a real-time dashboard
Enroll Now Please reach out and enroll with Esusu directly at [email protected]

Borrowers participating in Freddie Mac’s credit-building program are eligible for the following discounts. Please reach out to your Freddie Mac representative for more details, including available subsidies.

Esusu Market Rates Freddie Mac Discounted Rates
Targeted Affordable Housing (TAH) and Conventional
Onboarding Fee $3,500 $3,500
Maximum Monthly Fees $2.00/unit $1.50/unit
*If multiple properties are enrolled at once, the enrollment fee is waived for each additional property after the first.
Small Balance Loans (SBL)
Onboarding Fee $3,500 No onboarding fee
Maximum Monthly Fee $2.00/unit No monthly fee
Maximum Annual Fee N/A 5-50 units  $1,000 >50 units  $2,000
Volume Discount N/A Enroll 10+   properties 30% Enroll 20+  properties 50%

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