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.

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.