Current Reports

Small Multifamily Investment Trends Report Q1 2025

Arbor’s Small Multifamily Investment Trends Report Q1 2025, developed in partnership with Chandan Economics, examines a key commercial real estate sector that consistently shows stability amid ongoing economic volatility. Small multifamily continues to show positive trends in key indicators, such as asset valuations, originations volume, and construction, signaling that the sector should continue to overpower headwinds as it builds on its ongoing momentum.

Articles

Top Markets for Multifamily Permitting Per Capita

With construction activity continuing to vary according to market, newly released U.S. Census Bureau data reveals emerging trends in multifamily building permits issued and how supply dynamics are poised to impact rent pricing patterns in the nation’s top 100 markets.

Articles

FHA Loan Changes Boost Access to Affordable and Market-Rate Multifamily Financing

The U.S. Department of Housing and Urban Development (HUD) recently announced that new Federal Housing Administration (FHA) rules designed to boost housing production are now in effect. The new rules bring more favorable debt service coverage ratios (DSCRs), loan-to-cost ratios (LTC), and loan-to-value (LTV) ratios on certain types of FHA multifamily loans, unlocking more proceeds to borrowers.

Analysis

U.S. Multifamily Market Snapshot — February 2025

The U.S. multifamily sector finished 2024 with the wind at its sails, as the market settled into a more normalized cycle. Rental demand continued to be driven by solid wage growth and household formation, as well as high home prices leading many would-be-homebuyers to consider lifestyle renting.

Articles

FHA Multifamily Case Study: Closing Loans Amid Uncertainty

In times of volatility, it pays to have support from a team willing to go the extra mile. Whether it’s meeting tight deadlines or ensuring all requirements are met, Arbor’s Federal Housing Administration (FHA) Underwriting department remains committed to helping borrowers secure loans that expand rental housing opportunities for Americans.

Analysis

Top U.S. Multifamily Rent Growth Markets — Q4 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

CREFC Miami 2025: Young Professionals Network Fosters Career Growth

Networking and attending industry conferences to learn trends and insights are among the most advantageous ways young commercial real estate finance professionals can advance in their careers. This year, Gabriel Rondon, Analyst, Structured Asset Management at Arbor and a CRE Finance Council (CREFC) Young Professionals Network member, was selected as one of the network’s ambassadors at CREFC Miami, giving him a golden opportunity to expand his professional horizons.

Articles

The Single-Family Rental Sector Returns to Growth Mode

Although the single-family rental (SFR) sector’s profile expanded after the 2007-2010 subprime mortgage crisis, the number of its households slid between 2016 and 2020 as many rentals transitioned into owner-occupied homes. Following a period of pandemic-related uncertainty, SFR has returned to growth mode, increasing its number of households for the second time in three years.

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Ivan Kaufman Talks Arbor’s Success in Multifamily During COVID-19 at NYU Capital Markets Leadership Series

Kaufman Shares Why Multifamily Has Remained a Strong Asset Despite the Global Pandemic

Ivan Kaufman, the founder, chairman and CEO of Arbor Realty Trust, Inc. (NYSE:ABR), appeared as the first featured guest on the NYU Schack Institute of Real Estate’s Capital Markets Leadership Series. Defying the negative economic pressures of COVID-19, Arbor achieved strong earnings. Kaufman shared an insider’s view of what’s behind his company’s phenomenal success and forecasts for the multifamily sector’s post-coronavirus future.

“Our earnings have never been better,” Kaufman stated to the program host, Sam Chandan, dean of the Schack Institute. “Most people are cutting their dividends or trying to figure out how to maintain them. We’ve increased our dividend in the pandemic.”

Arbor’s experienced management team anticipated the recession, following a 10-year bull run. The company structured its balance sheet and its lending, positioning itself for strong performance during the economic downturn. As suggested in other recent interviews, Ivan emphasizes how the REIT has a strategically diversified business platform. This includes serving as a top Fannie Mae and Freddie Mac small multifamily lender having a more than $5 billion balance sheet, and being active in growth areas such as single-family rentals (SFRs).

With headquarters in Uniondale, New York, Arbor has had many of its employees return to the office ahead of its peers. Kaufman advised companies to exercise common sense with phased re-openings and to consider density, transportation and the effectiveness of remote working.

Despite COVID-19, multifamily has performed exceptionally well. He credited the CARES Act with enabling people to pay rent and keeping the economy afloat. Prior to the pandemic, multifamily properties experienced consistent rent increases of 3% to 5% each year, for the last decade.

Even with the coronavirus disruptions, Kaufman opined multifamily remains a solid asset class. “When you underwrite a loan and the property is 95% occupied, there is coverage. You can go down to 87% or 86% occupied before you start seeing some pain. So, we’re in good territory,” he explained. “It’ll get a little bit softer, but I think overall, we’re in an extraordinarily great place.”

He pointed out that investors can refinance with today’s low interest rates, offsetting a decline in rents and occupancy with reduced mortgage payments.

However, the head of one of the nation’s leading multifamily lenders noted Class A urban properties will suffer as COVID-19 has accelerated the demand for reduced density and millennials are moving to the suburbs to form families.

“Absorption is going to be a lot slower. That will be the soft part of the market, no question about it,” said Kaufman. “The workforce housing, the B and C, specifically Class B properties, are holding up extraordinarily well.”

In addition, Fannie Mae and Freddie Mac support the multifamily market, providing liquidity and consistency in multifamily lending. During the interview, Kaufman also discusses the growth in SFR demand, additional investment opportunities, other capital sources, the CMBS market, technology and much more.

Listen to the full NYU Schack Institute of Real Estate Capital Markets Leadership Series Interview.

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For more of Ivan Kaufman’s perspective on current multifamily trends, visit Arbor in the News. Contact Arbor to learn about our multifamily solutions to address your business goals.