Video: Special Report Fall 2023 Key Takeaways

In this video, Dr. Sam Chandan, Founding Director of the C.H. Chen Institute for Global Real Estate Finance at the NYU Stern School of Business and non-executive chairman of Chandan Economics, details the key takeaways of Arbor’s Special Report Fall 2023, which he co-authored with Ivan Kaufman, Chairman and CEO of Arbor Realty Trust.


FHFA Loan Caps for 2024: What Multifamily Borrowers Need to Know

The Federal Housing Finance Agency (FHFA) announced a $10 billion rollback of Fannie Mae and Freddie Mac’s volume cap for loan purchases for 2023 to $140 billion ($70 billion for each agency). This move aligns with industry expectations, given the anticipation of continued headwinds for the multifamily in 2024. Next year’s cap for the Government-Sponsored Entities (GSEs) is a reduction of approximately 7% from the $150 billion limit set for 2023 and a return to the level it was in 2021.

Current Reports

Affordable Housing Trends Report Fall 2023

With the cost of living climbing, the need for affordable housing has become more urgent. Although demand continues to outpace available supply, multifamily investment in affordable housing is fortified by Low-Income Housing Tax Credits (LIHTC), Project-Based Section 8, and the Housing Choice Voucher (HCV) programs. Arbor’s Affordable Housing Trends Report Fall 2023, developed in partnership with Chandan Economics, examines the supply-driven programs and policies designed to improve supply at a point in time when federal gridlock has stalled many funding increases.

Current Reports

Small Multifamily Investment Trends Report Q4 2023

Arbor’s Small Multifamily Investment Trends Report Q4 2023, developed in partnership with Chandan Economics, is a snapshot of a strong and resilient subsector continuing to navigate ongoing market dislocation. The report shows that distress has remained limited, even with valuations and measures of risk pricing in flux. As conditions start to stabilize, there are signs that deal activity is picking up.


U.S. Multifamily Market Snapshot — Q3 2023

The U.S. multifamily market held steady during the third quarter of 2023, as high mortgage rates and a lack of inventory in the housing market continued to drive rental demand.


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.