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.

Articles

Advancing Sustainability in CRE Finance in a Shifting Landscape

With political headwinds reshaping the corporate responsibility landscape, commercial real estate (CRE) leaders, policymakers, and academics recently gathered in New York City for the NYU Stern Chen Institute for Global Real Estate Finance’s 3rd Annual Symposium on Innovation & Sustainable Real Estate to discuss the future of sustainable real estate finance, investment, operations, and technology. In a series of panel discussions, industry leaders offered their perspectives on how sustainability is evolving in a new political environment and why green policies still make business sense.

General: 800.ARBOR.10

Ivan Kaufman Talks Housing on Bloomberg TV: Perfect, Positive Storm

Arbor Realty Trust’s CEO explains COVID-19’s current and future impacts on multifamily housing

Ivan Kaufman, the founder, chairman and CEO of Arbor Realty Trust, Inc. (NYSE:ABR), described today’s “perfect, positive storm for housing,” in a Bloomberg TV interview. “Low interest rates, people moving out of the urban areas, people buying homes – that’s why the housing market is on fire,” he said. “All those factors are working well together.”

On the program, “What’d You Miss?” the head of one of the most prolific multifamily lenders in the country explained why COVID-19 did not create a wave of massive foreclosures. Instead, it accelerated an even greater demand for suburban products.

With Arbor’s exceptional third-quarter performance, again increasing earnings and dividend, he shared his expertise on the multifamily market trends, eight months into the pandemic. He also provided prudent advice in forecasting what lies ahead.

“All the fundamentals still remain very good for multifamily,” said Kaufman. “There’s a little bit of softness with the Class A high-rises, new product, because a substantial number of tenants are moving to the suburbs. But overall, the asset class is performing extraordinarily well.”

Supplemented by the CARES Act and sheltering at home, tenants were spending less money. People are protecting their homes, where they are working and living. They’re making their payments, so their daily lives are not interrupted, he stated.

The head of the publicly traded REIT anticipates a second stimulus package. He acknowledged that awaiting the next round of federal assistance could be painful for some tenants. Yet, Kaufman opined that, in general, renters and homeowners would be in good shape.

However, he expressed concern for major urban gateway markets, including New York, Los Angeles and San Francisco. He pointed out that these are some of the labor markets most impacted by COVID-19, with many people leaving and not returning to those particular areas, and where new units are being delivered. “We expect there to be a reasonable amount of softness in those markets, specifically with market-rate apartments. You’ll see some concessions and a disproportionate amount of vacancies in those areas. That should last through next September.”

In addition, universities have remained closed. He added that students not returning to urban campuses will further delay a rebounding to economic normalcy in those areas.

In predicting an 11-month recovery, the leading real estate executive provided two-fold considerations for investors and operators. “Number one, you’ve got to carry the assets you buy through now until September,” he said. “Second, what is the recovery level going to be?” To truly understand investment markets, he emphasized the need to calculate future rents, occupancy and taxes.

Watch the complete Bloomberg TV interview in the video above.