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…


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.


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.


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.


Arbor Wins Prestigious Fannie Mae Excellence in Technology Award

Fannie Mae Multifamily recently honored Arbor with its prestigious 2022 DUS Lender Award for Excellence in Technology, citing it as “a constant source of innovative ideas” and “a stalwart partner” in driving “Fannie Mae’s digital transformation for the DUS community.”


U.S. Multifamily Market Snapshot — Q1 2023

The U.S. multifamily market continued to show signs of slowing during the first quarter of 2023. Rent growth was down from the skyrocketing pace seen in 2021 and 2022, although demand remained strong and vacancy held near historic lows.


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.