Current Reports

Single-Family Rental Investment Trends Report Q3 2024

The single-family rental (SFR) sector’s performance surged again last quarter, demonstrating its ability to thrive in all economic cycles. SFR construction continued its record-breaking ascent as CMBS activity blossomed. Arbor’s Single-Family Rental Investment Trends Report Q3 2024, developed in partnership with Chandan Economics, examines the sector’s fundamentals as would-be homeowners weigh the rent-vs-buy calculation.

Articles

Could Build-to-Rent Be a Solution to Housing’s ‘Missing Middle’ Problem?

Did you know that at the same time many renters navigate a housing market with limited affordable options, new apartment development continues to be held back by World War II-era zoning restrictions? In many localities, regulations introduced in the mid-1940s have choked the multifamily pipeline for decades, creating a “missing middle” that leaves low-income renters in a lurch.

Articles

Build-to-Rent Construction Continues Its Record-Breaking Ascent

Increasingly, single-family rental (SFR) operators have been relying on build-to-rent (BTR) development to bridge the housing gap, accelerating the momentum of SFR construction through 2024’s halfway point. Both total SFR/BTR housing starts and BTR’s share of all single-family housing starts reached new record highs in the second quarter, setting the stage for another banner year.

Current Reports

Small Multifamily Investment Trends Report Q3 2024

The small multifamily outlook continues to brighten as more signs indicate a normalization has already begun. In the second quarter, originations activity and borrowing conditions improved as completions sat at a five-decade high, Arbor’s Small Multifamily Investment Trends Report Q3 2024, developed in partnership with Chandan Economics, shows. While the subsector’s fundamentals are trending up, it still has room for growth when interest rate relief arrives.

Articles

Top Markets for Multifamily Permitting in 2024’s First Half

While the overall pace of new multifamily permitting per capita in the U.S. slowed recently, it has picked up momentum in pockets of the country, especially the Midwest. In the first two quarters of 2024, Madison, WI, Columbus, OH, and Omaha, NE, were among the major metropolitan markets posting solid permitting gains, another sign of multifamily’s strength in all cycles.

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Ivan Kaufman Interview on Bloomberg Markets

Ivan Kaufman, the chairman and CEO of Arbor Realty Trust, Inc. (NYSE:ABR), discussed how multifamily housing is maintaining stability during COVID-19. In a “Bloomberg Markets” interview with anchor Alix Steel, he also explained, in particular, the growth in value of suburban housing.

“People have been paying their rent on the multifamily side. Collections are off only 1% to 2%,” said Kaufman. “Despite the dislocation, it has been a great performing asset.” He noted that the extension of federal aid, which will allow people to continue to pay rent, will be critical for the housing market.

The country’s reducing unemployment and getting the coronavirus under control are two factors that will affect the housing situation, Kaufman stated.

The real estate expert and entrepreneur made several additional noteworthy observations. “Homeownership is approaching 68%, the highest rate since prior to the Great Recession. So, this trend, which started before COVID, now has been accelerated,” he said. “People are moving out of the cities. The social unrest, schools, all of these factors are leading to people moving to the suburbs.”

Kaufman commented that the inventory is now very limited in the suburbs. He projected this will lead to price appreciation both for owner-occupied and single-family rental homes.

Adding perspective to today’s overall economic situation, he pointed out that commercial real estate is a $14 trillion industry. “There are three asset classes that are doing extraordinarily well: multifamily, single-family rentals, and industrial. Sixty percent of the asset classes are performing exceptionally well,” he said.

The hospitality and retail sectors are still suffering. However, suburban offices are reaping some benefits from the demand for less density, driven by COVID-19. “I think it’s going to be a mixed bag. Clearly, there are a lot of people evaluating urban offices and suburban satellites.” He opined people will need to continue to watch the landscape for the next six to 12 months, to see the extent of the impacts of a suburban workforce.

View the complete Bloomberg TV interview above.

Learn more about Arbor Realty Trust’s multifamily housing loans. Contact Arbor today to speak with a specialist about our different financing solutions.