Cap Rates Reach New Lows as Rents Continue to Soar The single-family rental (SFR) market had a strong third quarter, with record-setting growth continuing to attract new investors to the sector. This report provides an in-depth look at the SFR market with exclusive data and analysis on its performance. Key Findings: Cap rates dipped to 5.5% in the third quarter of 2021, hitting a new all-time low Vacant-to-occupied rent growth accelerated to a new high of 17.1% in July Occupancy rates were slightly below their generational high, reaching 95.0% in the third quarter Complete the form to instantly access the full report!
Articles
The eCore21 Summit brought together multifamily industry owners, operators, lenders and other executives to share their insights on the top trends impacting the multifamily market and what they expect in the year ahead. Here’s a quick recap of the eCore event.
Analysis
Multifamily rent growth for the U.S. overall was up 7.9% year-over-year during the third quarter of 2021, as Sun Belt markets continued to drive the recovery.
Articles
The pandemic accelerated the adoption of hybrid and work-from-home (WFH) setups across industries and geographies. While WFH adoption initially posed as a headwind for large multifamily properties in gateway markets, new tenants and urban dwellers are returning to the cities, bringing signs of optimism for rental demand.
Analysis
Las Vegas remained one of the nation’s top multifamily performers in the third quarter of 2021, with among the highest rent growth among large markets. After a brief pause at the onset of the pandemic, investors once again flooded into the market as sales volume neared a pace to reach 2019’s record high. The market also rose to the top of our Arbor-Chandan Large Multifamily Opportunity Matrix in 2021.
Research
The Q3 2021 Small Multifamily Investment Trends Report finds that the asset class may be less impacted by work from home trends than larger properties as fewer small multifamily tenants can work remotely. See how the small multifamily sector performed by reading the full report.
Reliability of Small Multifamily Tenant Base Fuels Recovery Our quarterly report on the current and emerging small multifamily investment trends features data and research from Chandan Economics. The report reviews the state of the market, identifying trends in underwriting, financing, cap rates, valuation and more. In the report, you’ll learn how small multifamily properties differ from larger properties, and the forces driving their investment performance. Key Findings: An analysis of work from home trends finds that small multifamily properties may be less affected than larger properties because fewer tenants can work remotely. Small multifamily cap rates held at 5.2% in the third quarter, effectively unchanged from last quarter. The refinancing share of originations rose as investors locked in rates ahead of potential monetary tightening and expected rate rise. Asset prices rose 2.9% from a year earlier and 7.7% over pre-pandemic highs. Complete the form to instantly access the full report!
Investment
Our 2021 Top Markets for Large Multifamily Investment Report ranks the top 50 U.S. metros based on eight key categories. Presented in the Arbor-Chandan Large Multifamily Opportunity Matrix, the top-ranking markets scored high in factors like labor market performance, renter demographics, population growth and COVID-19 response.
