Articles

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.

Articles

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.

Articles

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.

Articles

The Probability Renters Will Keep Renting Hits Record High

The average renter thinks there is a three-in-five chance they will still be in the rental market in 2027, according to the New York Federal Reserve’s recently released 2024 SCE Housing Survey. Compared to last year, the probability of the average renter not becoming a homeowner in the next three years was up 4.3 percentage points, reaching its highest mark since the study began in 2015.

Current Reports

Small Multifamily Investment Trends Report Q2 2024

Small multifamily’s performance continues to conform to pre-pandemic norms typically seen before the historic boom years of 2021 and 2022. In the first quarter of 2024, cap rates and asset prices both improved quarter-over-quarter, Arbor’s Small Multifamily Investment Trends Report Q2 2024, developed in partnership with Chandan Economics, has found. The subsector’s fundamental strength will support steady growth amid tight credit conditions until interest rate relief invites increased investment activity.

Analysis

U.S. Multifamily Market Snapshot — May 2024

Key fundamentals of the U.S. multifamily remained strong to start 2024. Despite fears of oversupply, rent growth remained stable and vacancy rates remained near historical lows.

Articles

Arbor Marketing Campaign Wins Two Awards at Industry Gala

For more than 30 years, Arbor has been committed to building strong bonds with clients that lead to mutual success. This philosophy is at the heart of a unique Arbor marketing campaign, The Art of Growing Financial Partnerships, which received two awards at the 30th Annual Financial Communications Society (FCS) Portfolio Awards Gala in New York City on May 2. The campaign, which was featured in two private jet terminals, used original stained-glass pieces to build brand awareness among high-net-worth travelers.

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.