Special Report: Spring 2023

Special Report: Spring 2023 The rental housing sector is well-insulated but not immune to market forces even as the economy edges into correction territory, Arbor Chairman and CEO Ivan Kaufman and Chandan Economics Founder Sam Chandan demonstrate in the findings of Arbor’s Special Report Spring 2023.   Key Findings: The sustainability of consumer financing and Read the full article…

Investment

Arbor’s Special Report Spring 2023

The rental housing sector is well-insulated but not immune to market forces even as the economy edges into correction territory, Arbor Chairman and CEO Ivan Kaufman and Chandan Economics Founder Sam Chandan demonstrate in the findings of Arbor’s Special Report Spring 2023.

Articles

Renting On Credit: New Platforms Modernize Monthly Multifamily Transactions

Until recently, full-scale optimization has skipped over the basic monthly rental payment transaction, with 78% of more than 100 million renters using paper checks. But now, two programs, backed by global leaders in financial services, are incentivizing tenants to pay the rent on credit, with perks like automatic credit reporting and points towards future purchases.

Articles

Top Markets for Renters Under 30

Renters 30 years of age and under, who now make up slightly more than one-quarter of the heads of households of rental units, are bolstering housing demand in markets known for their affordability and livability.

Press Releases

Arbor Realty Trust, Inc. Completes $315 Million Freddie Mac Q Series Securitization

UNIONDALE, NY, December 15, 2022 (GLOBE NEWSWIRE) – Arbor Realty Trust, Inc. (NYSE:ABR) (“Arbor,” “our,” or “we”) today announced the completion of an approximately $315 million loan securitization through Freddie Mac’s Q Series securitization program (the “Securitization”). Arbor’s affiliated entity Arbor Realty SR, Inc. originated the loans and was the loan seller for the Securitization. The Securitization is Arbor’s first Read the full article…

Articles

Five Benefits of Making Multifamily Investing Part of Your Portfolio

Multifamily investing involves the purchasing of properties with rentable housing units. In these types of investments, a group of investors often works together to mitigate costs, split profit shares, and reduce risk. Multifamily properties include apartment complexes, condo buildings, and townhouses, among other property types. When investing in multifamily properties is researched and undertaken prudently, it can generate steady and reliable income streams in all economic cycles.

Analysis

Arbor’s Top Articles of 2022: A Banner Year for Multifamily

After taking a pause during the peak of the COVID-19 pandemic, the U.S. multifamily market experienced a banner year in 2022. Throughout the year, Arbor continued to provide unique research and insights into our markets. Here’s a look at our top Arbor research articles from 2022, in case you missed them.

GENERAL: 800.ARBOR.10

Ivan Kaufman Points to the COVID-19 Market Favoring Multifamily Investments

CNBC Squawk On the Street Interview With Ivan Kaufman on Current Real Estate Trends

Arbor Realty Trust, Inc. (NYSE:ABR), one of the largest national mortgage finance lenders in the multifamily sector, has demonstrated strong performance throughout the COVID-19 crisis. The company’s Chairman and CEO Ivan Kaufman spoke with CNBC’s David Faber on “Squawk on the Street,” to shed light on the current state of multifamily and future market projections.

“Because of the government support by Fannie and Freddie providing multifamily financing to this nation, there has been minimal dislocation and normal liquidity,” Kaufman said. He added that interest rates are extraordinarily low, and the market has been active with refinancing as well as a significant reemergence of purchase activity.

Data indicates that thus far, the vast majority of tenants are paying their rent. In addition to the CARES Act and other supplemental payments, Kaufman attributed the positive outcome to a psychological factor in renters. “Their home is their castle. They’re working in their home. They’re living in their home. They are there 24/7. And they are keeping their home protected, so rents have been paid. It’s really a remarkable phenomenon,” he said.

However, the industry leader also warned of the possibility of “a perfect storm,” with the ending of the CARES Act and other governmental assistance, coupled with the expiration of eviction moratoriums. Kaufman pointed out that COVID-19 has accelerated the flight to the suburbs, a trend well underway prior to the pandemic. He noted the course of the viral threat, prolonged unemployment, and the denial of H-1B visas precluding people from coming into the country and occupying apartments could present additional challenges.

Arbor primarily finances affordable workforce housing, a segment which has not been as heavily impacted as other asset classes. “Our portfolio is fairly insulated,” said Kaufman. “In the urban areas where we don’t have a huge concentration, I think that’s where you’re going to have a little bit of an issue. In urban areas, I’d be concerned that there will be some softness.”

Yet even within the COVID-19 environment, aside from industrial, multifamily remains the number one asset class. Kaufman projected a future increase in multifamily property values due to low interest rates, significant cap rate compression and the sector’s ability to weather economic down cycles.

You can view the entire CNBC interview above.

Learn about Arbor’s financing options. Contact Arbor today to find out more about our multifamily products.

For more information on current real estate market trends, check out our Q2 Real Estate Investments Report and the Q2 Multifamily Investment Snapshot on the Chatter Blog.