Even as some developers have pumped the brakes on single-family construction, construction starts of single-family rental (SFR) units soared to a new record high in 2022 — a signal that demographic and structural tailwinds continue to outweigh cyclic recessionary headwinds.
While housing migration and rental demand over the last few years have been dominated by more affordable Sun Belt markets, a more diverse selection of markets comprised the top rent growth list for 2022.
Even as the economy’s momentum slowed in 2022, multifamily construction continued to ramp up, reaching highs not seen since the 1980s. As the number of new units increased rapidly last year, the multifamily sector’s share of all new residential construction also expanded to make up more than one-third of all starts.
The outlook for the single-family rental (SFR) sector continues to be upbeat even as rent growth cools nationally. Build-to-rent (BTR) communities have been expanding their footholds in neighborhoods across the U.S. These starts hit a new record high as rental demand has risen from would-be home buyers priced out of ownership by high interest rates.
Due to increased demand for Single-family rental and build-to-rent financing, your lender’s level of expertise matters even more now. Arbor, which has more than 30 years of experience serving multifamily borrowers, has a high repeat sponsor rate that is a testament to our best-in-class service.
SFR Construction Captures Record Market Share as Cap Rates Rise The outlook for the single-family rental (SFR) sector continues to be upbeat even as rent growth cools nationally. Build-to-rent (BTR) communities have been expanding their footholds in neighborhoods across the U.S. These starts hit a new record high as rental demand has risen from would-be home buyers priced out of ownership by high interest rates. Key Findings: BTR accounts for 6.3% of new single-family construction starts in the past year, a new record high. SFR rent growth on new leases slows sharply as renewal rent pressures maintain their strength. Cap rates have started to rise, jumping to 5.6%. Complete the form to instantly access the full report!
The surging U.S. multifamily market showed signs of slowing during Q4 2022. Rent growth remained high, although lower than the record-breaking increases last year.
Because single-family rental (SFR) properties tend to be located in the suburbs and away from public transportation hubs, the typical tenant drives to work. As a result, an area’s typical commuting time is a factor that is often weighed heavily by residents — impacting rental demand and pricing.
Arbor’s nationwide experience and expertise allow us to customize multifamily financing wherever your portfolio takes you.
Toledo,
OH
Freddie Mac SBL
|
$1-5M
Memphis,
TN
Freddie Mac SBL
|
$1-5M
Anchorage,
AK
Fannie Mae Small Loan
|
$1-5M
Holyoke,
MA
Fannie Mae Green Financing
|
$1-5M
Columbia,
SC
Fannie Mae DUS
|
$5-10M
Mesquite,
TX
Spring Valley,
CA
Freddie Mac SBL
|
$1-5M
Ypsilanti,
MI
Fannie Mae DUS
|
$1-5M
San Diego,
CA
Freddie Mac SBL
|
$1-5M
Ypsilanti,
MI
Freddie Mac SBL
|
$1-5M
Chattanooga,
TN
Fannie Mae DUS
|
$1-5M
Houston,
TX
Arbor Realty Trust
|
$10M+
Knoxville,
TN
Fannie Mae DUS
|
$1-5M
Bellflower,
CA
Freddie Mac SBL
|
$1-5M
Ridgefield,
NJ
FHA
|
$1-5M
