How Multifamily Property Renovations Add Value and Marketability

The ideal time to renovate is when the rental market is strong. With high occupancy rates, borrowers are more likely to quickly realize returns on their multifamily property renovations through higher rents. However, renovating during a market downturn, when rents are often cheaper, inventory is higher, and materials are more affordable, is also a sound strategy.

Current Reports

Single-Family Rental Investment Trends Report Q2 2024

Quarter after quarter, the single-family rental (SFR) sector reaches new heights. From new construction to cap rates, Arbor’s Single-Family Rental Investment Trends Report Q2 2024, developed in partnership with Chandan Economics, details how the sector’s healthy fundamentals create profound optimism in its long-term prospects.


Arbor Sponsors Smile Farms Golf Outing Supporting Local Employment Opportunities

Arbor, which takes pride in helping employees reach their full potential, was honored to sponsor and participate in Smile Farms’ 10th Anniversary Golf Outing on May 20 at the Plandome Country Club on Long Island, NY, benefiting the Long Island-based organization dedicated to advancing opportunities for people with disabilities.


New York State’s 2025 Budget Advances Affordable Housing Goals

In April, New York State Governor Kathy Hochul announced a landmark budget agreement heralded as a giant step for affordable housing. New York’s FY 2025 Enacted Budget includes several key policy changes that could create thousands of affordable housing units across the state.


SFR East 2024: How Economics and Demographics Shape the Rental Market

IMN’s Single Family Rental Forum (East), the cornerstone gathering of the SFR industry, concluded on May 22, 2024, in Miami, FL. Over three days, 1,800 attendees listened to more than 280 speakers discuss all angles of the SFR industry. On the first day of the conference, Arbor’s Tres Seippel, Director, Construction Management, participated in a wide-ranging panel discussion examining economic and demographic forces influencing SFR and build-to-rent (BTR), which also featured Rick Dalton, President of the Dalton Group, Domonic Purviance of the Federal Reserve Bank of Atlanta, Wade McGuinn, CEO of McGuinn Hybrid Homes, and Heather Williams, VP at Willow Bridge Property Company.


Affordable Housing Market Snapshot — May 2024

As housing costs spiral, rental affordability has become a more urgent issue, burdening a greater number of Americans. With more funding on the way, policymakers and private market advocates are pressing ahead with plans to add units to an increasingly tight housing market.

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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.