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.

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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.

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Top SFR Annual Rent Growth Markets

Even as rents retreated elsewhere, single-family rentals (SFR) have continued to outperform all other housing sub-types, exceeding the all-property type national average in 17 consecutive months through February 2024, according to Zillow’s Observed Rent Index (ZORI). Annual SFR rent growth has seen substantial gains in many metropolitan areas since national rent growth peaked in March 2022. In this deep dive, the Chandan Economics and Arbor Realty Trust research teams pinpoint the metropolitan areas where SFR rents are rising the fastest.

General: 800.ARBOR.10

Ivan Kaufman Talks 2021 Housing Demand on Yahoo! Finance Live

Ivan Kaufman on Yahoo! Finance Live

Arbor Realty Trust’s CEO discusses the company’s strong first-quarter earnings and his outlook for housing demand this year

Arbor has had an “unbelievable run,” with the first quarter of 2021 marking the 10th year in a row that the mortgage REIT has raised their dividend, noted Ivan Kaufman, founder, chairman and CEO of Arbor Realty Trust, Inc. (NYSE: ABR) in an interview on Yahoo! Finance Live with Adam Shapiro and Seana Smith. Much of Arbor’s success can be attributed to its focus on resilient asset classes like multifamily and single-family rental (SFR), he noted.

“We’re just in a great space. We’re a multifamily lender. We’re very active in the single-family rental space. Those segments of the economy are just ripping and roaring, fueled by low interest rates, an imbalance of supply and demand, and an attractive investment class. We’re just in the right place at the right time,” Kaufman said.

In the interview, Kaufman discussed why single-family rentals have become so appealing. While the market has largely been dominated by mom-and-pop investors, institutional players have slowly been entering the space since the Great Recession.

“With institutional capital coming and professional management coming to the space, it’s just becoming more and more attractive,” he said.

The pandemic has only accelerated demand for SFR product, as households began to move out of urban areas in search of more space and affordable prices in the near suburbs. As home prices have jumped in the last year, those priced out of the market are looking to rent homes as an alternative.

On the multifamily side, Kaufman noted that there is still a lot of demand and new developments are being leased up, albeit at a slower pace.

Kaufman also shared his outlook for housing demand in 2021, noting that home prices will likely only continue to go up due to the persistent imbalance of supply and demand.

“You’re going to see too many people looking to buy homes, not enough homes for sale. You’ll still see some level of appreciation,” he said, adding that if interest rates remain low, people will lean toward buying a home.

Labor market shortages and high lumber prices are also delaying construction of new homes. “You’re going to see a little bit of a slow move on new homes coming to market,” Kaufman noted.

Watch the full interview here.