More than halfway through 2023, the single-family rental (SFR) sector continues to demonstrate why it deserves the attention of multifamily investors.
While the single-family rental (SFR) sector’s rent growth averages have retreated from record highs, structural tailwinds are keeping price growth positive — both nationally and in major SFR markets. In this research brief, Chandan Economics and Arbor Realty Trust analyze DBRS Morningstar data, which covers the top 20 MSAs by SFR activity, to discover the metropolitan areas where SFR rent growth is the hottest right now.
Fannie Mae recently announced that its Small Loan cap has increased from $6 million to $9 million for all loans committed as of August 22, 2023. Multifamily borrowers and lenders have praised the change to the Fannie Mae Small Loans program, which will encourage greater investment in a rapidly growing sector where demand remains high despite market volatility.
While macroeconomic headwinds may not recede soon, tenant dependability, the core strength of small multifamily, has proven to be a powerful antidote to financial market storms.
As Baby Boomers reach retirement age, their evolving geographic preferences are strengthening housing markets and local economies in new locations, which feature attractive climates, relative affordability, and ample outdoor activities. With swelling populations of senior citizens, our top five emerging metropolitan areas for retiree relocation are fertile ground for multifamily real estate investment.
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More than halfway through 2023, the single-family rental (SFR) sector continues to demonstrate why it deserves the attention of multifamily investors. Arbor’s Single-Family Rental Investment Trends Report, developed in partnership with Chandan Economics, provides an inside look at this high-performing sector where SFR/build-to-rent (BTR) construction starts are breaking records amidst the ongoing challenges of elevated interest rates, tighter underwriting standards, and historically high cap rates.
Arbor’s nationwide experience and expertise allow us to customize multifamily financing wherever your portfolio takes you.
Roseville,
MI
Freddie Mac SBL
|
$1-5M
Levittown,
PA
|
$10M+
Memphis,
TN
Fannie Mae DUS
|
$10M+
Laurel,
MD
Fannie Mae DUS
|
$10M+
Lakeland,
FL
Fannie Mae DUS
|
$10M+
Cherry Hill,
NJ
Fannie Mae DUS
|
$10M+
Philadelphia,
PA
|
$1-5M
Gainesville,
FL
|
$1-5M
Los Angeles,
CA
|
$1-5M
Freddie Mac SBL | $1-5M
Augusta,
GA
Fannie Mae Small Loan
|
$1-5M
Brooklyn,
NY
Freddie Mac SBL
|
$1-5M
Brooklyn,
NY
Freddie Mac SBL
|
$1-5M
Chicago,
IL
|
$5-10M
Queens,
NY
Bridge
|
$10M+
