Current Reports

Single-Family Rental Investment Trends Report Q1 2023

Arbor’s Single-Family Rental Investment Trends Report Q1 2023, developed in partnership with Chandan Economics, explores a growing multifamily sector with a unique ability to rise above macroeconomic headwinds. Last year, investors purchased more single-family rental (SFR) units than in 2021 as uncertainty rippled through the commercial real estate industry. Construction in the sector also ramped up in 2022, with starts reaching all-time highs by unit count and market share. This upward trend, fueled by significant structural support, sets SFR apart from many other commercial real estate sectors.

Articles

Top Counties for Demographic Tailwinds

When apartment investors consider locations for capital deployment, growth potential is a top-of-mind concern. On a local level, population changes can influence everything from rent growth to occupancy to future property values. County-level positive net migration and natural population growth trends, identified in an analysis of U.S. Census Bureau data, reveal the counties where demographic tailwinds make a compelling case for real estate investment.

Single-Family Rental Investment Trends Report Q1 2023

Investor Purchases, New Starts, and Tenant Performance Show Strength as Cap Rates Rise Arbor’s Single-Family Rental Investment Trends Report Q1 2023, developed in partnership with Chandan Economics, explores a growing multifamily sector with a unique ability to rise above macroeconomic headwinds.   Last year, investors purchased more single-family rental (SFR) units than in 2021 as Read the full article…

Articles

Affordable Housing Market Snapshot — Spring 2023

Arbor’s latest Affordable Housing Trends Report, developed in partnership with Chandan Economics, offers a wide-ranging lens into the complex, though critically important, affordable and workforce housing sectors.

Articles

Seven Facts about FHA Multifamily Loans for Affordable Housing

The Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development (HUD), is one of the largest mortgage insurers in the world. The agency insures mortgages on affordable housing, multifamily properties, single-family homes, multifamily properties, and health care facilities. Since 1934, FHA has financed over 50,000 multifamily mortgages nationwide. Whether you’re interested in acquiring, refinancing, or rehabilitating an affordable housing property, FHA multifamily loans are a financing route you need to know about.

Articles

Video Analysis: Arbor’s Affordable Housing Trends Report Spring 2023

In this video, Sam Chandan, professor of finance and Director of the Chen Institute for Global Real Estate Finance at the NYU Stern School of Business, discusses the key findings of Arbor’s Affordable Housing Trends Report Spring 2023, developed in partnership with Chandan Economics. He adds context to the Federal, state, and local housing policy trends impacting the future of the affordable sector, which, he notes, continues to have the highest development prospects of any residential subtype.

Current Reports

Small Multifamily Investment Trends Report Q1 2023

The small multifamily subsector, strengthened by sound structural fundamentals, is well-positioned to face distress due to interest-rate pressure. Even though pricing has slid lower and cap rates have risen, it should remain resilient in the coming quarters. A deep dive into a uniquely positioned subsector, Arbor’s Small Multifamily Investment Trends Report Q1 2023, developed in partnership with Chandan Economics, analyzes the competing headwinds and tailwinds influencing investment performance.

GENERAL: 800.ARBOR.10

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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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