Even as rents retreated elsewhere, single-family rentals (SFR) have continued to outperform all other housing sub-types, exceeding the all-property type national average in 17 consecutive months through February 2024, according to Zillow’s Observed Rent Index (ZORI). Annual SFR rent growth has seen substantial gains in many metropolitan areas since national rent growth peaked in March 2022. In this deep dive, the Chandan Economics and Arbor Realty Trust research teams pinpoint the metropolitan areas where SFR rents are rising the fastest.
LIHTC Utilization Reaches New High as Low Housing Supply Erodes Affordability
With the cost of living climbing, the need for affordable housing has become more urgent. Although demand continues to outpace available supply, multifamily investment in affordable housing is fortified by Low-Income Housing Tax Credits (LIHTC), Project-Based Section 8, and the Housing Choice Voucher (HCV) programs. Arbor’s Affordable Housing Trends Report Fall 2023, developed in partnership with Chandan Economics, examines the supply-driven programs and policies designed to improve supply at a point in time when federal gridlock has stalled many funding increases.
Key Findings:
- The number of households of renters living in inadequate conditions who do not receive rental assistance has grown by 70% over the past two decades.
- Utilization of the 4% Low-Income Housing Tax Credit (LIHTC) reached a new high as affordable housing rehabilitations outpaced ground-up development.
- With the 2024 federal budget in limbo, the U.S. Department of Housing and Urban Development’s (HUD) spending programs are currently frozen at 2023 levels, delaying an expansion of the Housing Choice Voucher (HCV) program.