Lifestyle renters — those who have the means to own but prefer to rent or are willing to pay more for apartments with amenities — have become a key driver of rental demand in single-family rental homes, build-to-rent communities, and other types of high-quality multifamily housing. With this small yet influential demographic growing, our research teams examine and explain the factors driving lifestyle renter demand.
Small Balance Market Resiliency Comes into Focus to Start 2019
Ever since the Federal Reserve increased short-term interest rates in the waning days of 2018, the conversation has shifted from when will rates rise again to will the Fed have to lower rates?
Markets currently peg the probability of at least one rate cut in 2019 at about even odds. However, this does not mean a downturn is imminent. By several measures, the economy is performing at its highest capacity of any point since before the financial crisis.
Whether a period of economic weakness is years away or just around the corner, the small balance multifamily sector is projected to remain healthy.
For more on the small balance multifamily sector, read Arbor Chatter’s “Q1 2019 Small Balance Multifamily Investment Trends Report.”
Explore charts and insights, including:
- Lending Volume
- Cap Rates & Spreads
- Interest Rates
- Leverage & Debt Yields