Analysis

Small Multifamily Investment Snapshot — March 2025

Amid ongoing macroeconomic uncertainty, the small multifamily sector remains favorably positioned for stability as the structural need for affordable housing in the U.S. has supported the strength of the sector’s demand profile.

Articles

Top Markets for Rental Occupancy

Nationally, vacancies have risen, but the performance of rental housing is extremely localized. Out of the 75 largest U.S. metropolitan areas, the occupancy rate for all types of rental properties, including single-family rentals, 2-4 family, multifamily, and mobile homes, increased in 36 markets last year, while exceeding 95% in nearly one-third of all markets, according to an analysis of newly released U.S. Census Bureau data.[1] From Grand Rapids, MI, to Columbia, SC, the top markets for rental occupancy show where conditions are tightest and demand is strongest.

Current Reports

Single-Family Rental Investment Trends Report Q1 2025

Arbor’s Single-Family Rental Investment Trends Report Q1 2025, published in partnership with Chandan Economics, is an up-close look at the single-family rental (SFR) sector as it enters a period of normalcy after explosive pandemic-era growth. SFR maintains its balance with the support of a healthy set of fundamentals while capital markets rebound and rent growth moderates.

Articles

Small Multifamily Price Growth Trends Show Stabilization

Small multifamily price growth trends indicate a stabilization may be ready to take hold. Expanding on the findings of Arbor’s latest Small Multifamily Investment Trends Report, our research teams more closely examined valuations to determine if trends in pricing and other fundamentals are supporting a turnaround.

Articles

SFR Rent Growth: Top Markets and Leading Regions

Elevated mortgage interest rates and high home prices boosted demand for single-family rentals (SFR) last year, supporting the growth of rents in almost all of the 100 largest metropolitan areas. Pricing momentum, which averaged 4.5% nationally, was concentrated in affordable markets in the Northeast and Midwest, an analysis of Zillow’s Observed Rent Index data shows.

Articles

Build-to-Rent’s Robust Activity Settles into Stable Pattern

Increasingly, single-family rental (SFR) operators have been relying on build-to-rent (BTR) development to satisfy their inventory needs. The popularity of BTR communities made economies of scale possible for the SFR sector in the recovery after the 2007 housing crisis and continues to fill a housing need nationwide. Now, newly released U.S. Census Bureau data shows that SFR development activity remained robust even as its momentum slowed, moving the sector into a more stable equilibrium.

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Ivan Kaufman Discusses Historical Strength of Multifamily During Recessions in NYSE Interview

Ivan Kaufman talks multifamily in NYSE Floor Talk interview

Arbor Realty Trust’s CEO explains what differentiates Arbor from other REITs.

View the NYSE interview.

Ivan Kaufman, the founder, chairman and CEO of Arbor Realty Trust, Inc. (NYSE:ABR), on the New York Stock Exchange program “Floor Talk,” provided insights about how Arbor has become one of the largest and most successful Fannie Mae and Freddie Mac licensed multifamily lenders in the United States.

COVID-19 has wreaked havoc in various CRE sectors and businesses. But undaunted by the pandemic, Arbor has continued to perform exceptionally well. Kaufman credited his senior management team members, who have worked with him for an average of over 25 years. Having weathered multiple market cycles, Arbor’s seasoned professionals know how to react and lead in times of unanticipated crises.

“It’s not when you get into a crisis what you do. It’s how you prepare for a crisis,” Kaufman stated. As Ivan recently discussed at his appearance in the NYU Capital Markets Leadership Series, Arbor anticipated the economic downturn despite the real estate market previously experiencing a historically extensive period of growth.

“Could we see COVID? No, but we did see a recession,” he said. “So, we had a lot of liquidity. We were in the right asset class. Our liability structures are outstanding. We were well prepared and could absorb quite a dislocation.”

The program host, Judy Shaw, asked what differentiates Arbor from its competitors.

Kaufman replied that Arbor has a variety of businesses. It earns income on interest and is also an operating company. It’s one of the largest government agency lenders in the country. Arbor’s servicing revenue is derived from an over $25 billion portfolio, producing consistent, reliable and recurring income for many years.

The corporation also receives gain on sales, has a thriving origination business, and earns interest from escrow balances. After experiencing multiple cycles, Arbor strategically focused its lending on multifamily and single-family rental (SFR) assets.

Kaufman pointed out that multifamily historically has shown resilience, even with the Great Recession, especially compared to other sectors. “It bounced back much more quickly, and the values continued to climb post-financial crisis,” he commented.

As seen in our Q3 Small Multifamily Investment Trends Report, even with the COVID-19 crisis, multifamily has maintained its strength with low vacancies and high rent collections.

“During the last 10 years, we experienced unprecedented rent growth of approximately 5% per year,” said Kaufman. “While the outlook is not as robust going forward, it’s still a great asset class with solid fundamentals and is expected to continue to perform well.” He projects future growth in value for the multifamily sector, noting low interest rates and cap rate compression.

Industrial and self-storage asset classes have also performed well throughout the coronavirus disruption. However, the real estate expert predicts difficult challenges still lie ahead for hospitality and that retail will undergo significant adjustments. Kaufman also forecasts softness in the office sector but added this will offer opportunities.

View the NYSE interview.

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