Articles

The Most Active Markets for New Multifamily Development in 2025

After the volume of multifamily permits fell nationally in 2023 and 2024, this year is on pace to be a year of stabilization for multifamily development. According to the U.S. Census Bureau, out of the top 100 largest U.S. metros by population, 47 had more multifamily permits through the first six months of 2025 than they did over the same period last year. Driven by strong underlying multifamily demand, attractive investment opportunities are leading to rebounding construction pipelines. As multifamily permitting rises, we explore the markets where new permits issued are most concentrated and where construction activity is gaining momentum.

Current Reports

Small Multifamily Investment Trends Report Q3 2025

Arbor’s Small Multifamily Investment Trends Report Q3 2025, developed in partnership with Chandan Economics, examines the factors behind the continued upward trajectory of the sector amid an ongoing capital markets recalibration. Several of its core performance metrics, including valuations, originations, and credit standards, have shown measurable improvement as a multifamily market-wide normalization takes shape. Supported by strong fundamentals, small multifamily stands tall despite economic uncertainty.

Analysis

U.S. Multifamily Market Snapshot — August 2025

The U.S. multifamily market stood on the cusp of a new cycle at the halfway point of 2025, as demand continued to be driven by favorable demographic trends and a structural need for housing.

Articles

Small Multifamily Continues Steady Price Growth

Small multifamily valuations realized positive year-over-year growth in the second quarter of 2025, demonstrating the sector’s ongoing resilience in an unsettled economic environment. Steady rent growth, improving operating expense ratios, and stable cap rates helped move price growth into positive territory.

Articles

Metro-Level SFR Rent Growth Trends in the First Half of 2025

Albany, NY, and many other affordable mid-sized metropolitan statistical areas (MSAs) outpaced the national rent growth average for single-family rental (SFR) properties in the first half of 2025, according to an analysis of Zillow’s Observed Rent Index, which tracks the 100 largest markets in the U.S.

Articles

Larger Buildings and Smaller Units: How New Multifamily Completions Continue to Evolve

Driven by high construction costs, land constraints, and rental affordability, developers are increasingly prioritizing smaller units in higher-density multifamily properties. Utilizing data from the U.S. Census Bureau’s annual Survey of Construction, the research teams at Chandan Economics and Arbor Realty Trust have analyzed how the characteristics of new multifamily properties continue to evolve.

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.