In any multifamily project, site selection is a critical step requiring careful consideration. From New York to Los Angeles and all the major metropolitan areas in between, U.S. metros are ripe for new investment, but narrowing down the optimal location is never easy. In a new video, Dr. Sam Chandan, one of the commercial real estate industry’s leading scholars, shares his expert insight into Arbor Realty Trust’s latest Top Markets for Multifamily Investment Report.
Cap Rates Rose as Rents Climbed Steadily
The single-family rental (SFR) sector once again demonstrated strength and durability last quarter amid a general softening of the for-sale home market. Arbor Realty Trust’s Single-Family Rental Investment Trends Report Q4 2025, developed in partnership with Chandan Economics, leverages first-class data analysis to show why SFR’s investment return profile has grown more attractive in the last year.
Key Findings:
- SFR cap rates trended higher for the third consecutive quarter, as rents outpaced home prices.
- All of the 50 largest U.S. metros recorded positive year-over-year SFR rent growth.
- Debt yields rose again and are now up 280 bps since the second quarter of 2022.