Articles

Video: Dr. Sam Chandan Discusses Investment Opportunities in Multifamily

As the interest rate outlook brightens, unique opportunities for outsized returns abound, Dr. Sam Chandan, Founding Director of the C.H. Chen Institute for Global Real Estate Finance at the NYU Stern School of Business and the Non-Executive Chairman of Chandan Economics, explains in this top-level overview of Arbor’s latest Special Report.

Current Reports

Affordable Housing Trends Report Winter 2024/2025

Continually challenged by low inventory, affordable housing sits at a crossroads following the 2024 election. Incoming leadership plans to introduce market-based principles to an agenda that may also include an expanded Housing Choice Voucher program. Arbor’s Affordable Housing Trends Report Winter 2024/2025, developed in partnership with Chandan Economics, provides insight into a pivotal multifamily sector about to embark in a new direction.

Articles

Investors Upbeat on Multifamily as Rate Cuts Stimulate Deal Activity

The skies surrounding commercial real estate markets are clearing, suggest the Emerging Trends in Real Estate 2025 (ETRE 2025) findings. As pandemic-related structural changes settle into place, cyclical economic trends, such as interest rates, demand, and construction levels, are now the key drivers to watch.

Articles

Annual Build-to-Rent Starts Hit Another High in Q3 2024

As more single-family rental (SFR) operators rely on build-to-rent (BTR) development to supply new inventory, construction starts have steadily risen, reaching another record high in the third quarter of 2024. SFR/BTR construction has eclipsed 92,000 units in the last four quarters — an all-time high and an annual increase of 31.4%.

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.

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Ivan Kaufman Reveals Why Arbor Is a Top-Performing REIT on NYSE Floor Talk

Arbor Realty Trust’s CEO discusses what sets Arbor apart and how it has thrived amid the pandemic

Most commercial mortgage REITs focus on one product line, but Arbor’s diverse platform has allowed it to stand out from the competition, noted Ivan Kaufman, the founder, chairman and CEO of Arbor Realty Trust, Inc. (NYSE: ABR), in an interview with NYSE Floor Talk’s Judy Shaw.

“In every single climate, we’re very active with different products depending where interest rates are, depending where market demand is, and depending on where the consumer preferences are. So we’re not just relying on one product and we have multiple income streams,” he said.

One business Arbor is particularly active in is single-family build-to-rent. Kaufman used his decades of experience in the single-family residential industry to successfully lead Arbor into the single-family rental (SFR) business and develop its own proprietary Single-Family Rental Portfolio platform in late 2019. Arbor was also one of the first lenders to enter the space and the business has grown significantly over the past few years.

Build-to-rent is a segment of the SFR market that has taken off due to the pandemic and millennials moving to the suburbs as they mature and start families.

“If people can’t afford to buy or home or it doesn’t fit their economic profile, they rent a home. Renting a home has become a very high in demand experience,” he noted.

Developers are capitalizing on this mounting demand for rental homes. They are buying land and building communities with homes specifically for rent, while offering amenities often found in apartment complexes. Kaufman noted that because of the efficiencies that have evolved over the last few years, builders are finding they can develop these communities at a similar cost to a multifamily property.

As build-to-rent gains attention, institutional investors are beginning to enter the space. Builders are seeing the benefits of selling a portion of their single-family communities to larger investors who will turn around and rent out those units, Kaufman explained.

Build-to-rent is “a great asset class to be in and I’m glad Arbor Realty Trust is front and center in that market,” he said. “It’s dominating our platform.”

For more insights, watch the full interview above.