Articles

LIHTC Program: An Impactful Affordable Housing Financing Resource

As renters face a national shortage of 7 million low-income rental homes, the U.S. Department of Housing and Urban Development’s (HUD) Low-Income Housing Tax Credit (LIHTC) program is pivotal in helping to close the affordability gap for renters. It is the nation’s most significant resource for affordable apartment housing construction, which gives state and local agencies approximately $10 billion in annual budget authority to issue tax credits for affordable housing development.

Articles

FHFA Loan Caps for 2025: What Multifamily Borrowers Need to Know

The Federal Housing Finance Agency (FHFA) announced a $3 billion boost to Fannie Mae and Freddie Mac’s volume cap for loan purchases in 2025 to $146 billion ($73 billion for each agency). This increase in FHFA loan caps for 2025 aligns with industry expectations, given the anticipation of improving market conditions and lending activity expected in a lower interest rate environment. Next year’s cap for the Government-Sponsored Entities (GSEs) is an increase of approximately 4% from the $140 billion limit set for 2024.

Analysis

U.S. Multifamily Market Snapshot — November 2024

The U.S. multifamily market held steady in a more normalized cycle through the first three quarters of 2024, following its skyrocketing recovery from the pandemic-related contraction. Rental demand remained strong, driven by the continued nationwide housing shortage and strong wage growth, while the high levels of new construction seen over the last two years appears to have peaked.

Current Reports

Small Multifamily Investment Trends Report Q4 2024

Small multifamily’s normalization pushed forward last quarter as the Federal Reserve made a long-awaited reduction to the target federal funds rate. Arbor’s Small Multifamily Investment Trends Report Q4 2024, developed in partnership with Chandan Economics, shows signs of stability have multiplied. Robust rental demand, a limited supply of quality affordable housing, and several other promising developments should support the subsector’s strength heading into 2025.

Analysis

Top U.S. Multifamily Rent Growth Markets — Q3 2024

The U.S. multifamily market held steady in a more normalized cycle during the third quarter of 2024. Rental demand remained strong, while new leaders emerged among the top markets for rent growth.

Articles

Top Markets for Wage Growth in 2024

One of the most essential factors multifamily investors need to consider before executing a transaction is the health of the local labor market. Wage growth and other trends are driven by a delicate, constantly adjusting balance of labor supply and demand. In some markets, an inflow of employers can cause wages to spike. In others, population outflows can create the same effect. In this deep dive, we expand on the data findings from the 2024 Top Markets for Multifamily Investment Report, exploring the unique conditions driving metro wage growth trends.

Press Contact

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Current Reports

Top Markets for Multifamily Investment Report 2024

With interest rate pressure easing, quality multifamily investment opportunities have emerged from coast to coast, making identifying the optimal location essential. A roadmap for investors, Top Markets for Multifamily Investment Report 2024, developed in partnership with Chandan Economics, ranks the top 50 metropolitan markets found through an analysis of 10 key factors, including affordability, population growth, and climate risk.

General: 800.ARBOR.10

Ivan Kaufman on Bloomberg TV’s “What’d You Miss?”: The Housing Market is Booming

Ivan Kaufman on Bloomberg TV

Arbor Realty Trust’s CEO explains why 2021 will be another phenomenal year for the housing market

Despite pandemic-related concerns, the housing industry had an extraordinary year in 2020. While 2021 may not see as robust price appreciation, low supply and pent-up demand will support another strong year for the housing market, noted Ivan Kaufman, the founder, chairman and CEO of Arbor Realty Trust, Inc. (NYSE:ABR), in an interview on Bloomberg TV’s “What’d You Miss?” with Caroline Hyde, Joe Weisenthal and Romaine Bostick.

Even with the recent rise in interest rates, homeowners and consumers have been benefitting from low interest rates while creating “an enormous amount of wealth, almost $4 trillion of savings for homeowners,” Kaufman noted. “The bump up in interest rates has had a nominal effect but rates are still at historic lows.”

Getting into specific sectors of the housing market, Kaufman noted he’s extremely bullish on multifamily, which has “outperformed almost every other sector consistently and even through dislocations and recessions,” and the single-family market due to the rising homeownership rate and home price appreciation.

He noted, however, that the asset class he’s most excited about is the single-family build-for-rent community sector.

“It’s a new asset class, it’s being done very efficiently with a lot of demand and desire. And I think people have a hybrid between renting in a multifamily unit versus buying in a single-family community and that’s the sector I like the most in this investment cycle,” Kaufman said.

In the interview, Kaufman also shared his insights on the returning to cities. He noted that while there was a fear of a mass exodus, people will begin to return to the urban areas, especially younger people who want to live and work where there’s a lot of action.

He added that New York City is already beginning to see a resurgence.

“Over the last 30 days, you’ve had a rent adjustment in New York City. The number of apartments being rents are at record numbers, albeit at lower rates, but people are renting and renting quickly. There’s huge demand and concessions are disappearing.”

Looking at other commercial real estate sectors, Kaufman noted that the retail sector will face the most challenges, given that it was already going through a reconfiguration pre-COVID. On the other hand, he expects hard-hit sectors like restaurants and hospitality to begin to recover due to people’s pent-up desire to travel and dine out once they are vaccinated and places open up more capacity.

Watch the full interview here.