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.

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.