As decelerating construction supports rent growth in many markets, newly released U.S. Census Bureau data reveals emerging trends in multifamily building permits issued and how supply dynamics are poised to impact rent pricing patterns in the nation’s top 100 markets.
The U.S. Department of Housing and Urban Development (HUD) recently announced that new Federal Housing Administration (FHA) rules designed to boost housing production are now in effect. The new rules bring more favorable debt service coverage ratios (DSCRs), loan-to-cost ratios (LTC), and loan-to-value (LTV) ratios on certain types of FHA multifamily loans, unlocking more proceeds to borrowers.
The U.S. multifamily sector finished 2024 with the wind at its sails, as the market settled into a more normalized cycle. Rental demand continued to be driven by solid wage growth and household formation, as well as high home prices leading many would-be-homebuyers to consider lifestyle renting.
In times of volatility, it pays to have support from a team willing to go the extra mile. Whether it’s meeting tight deadlines or ensuring all requirements are met, Arbor’s Federal Housing Administration (FHA) Underwriting department remains committed to helping borrowers secure loans that expand rental housing opportunities for Americans.
The U.S. multifamily market held steady in a more normalized cycle during the third quarter of 2024. Rental demand remained strong, while new leaders emerged among the top markets for rent growth.
Networking and attending industry conferences to learn trends and insights are among the most advantageous ways young commercial real estate finance professionals can advance in their careers. This year, Gabriel Rondon, Analyst, Structured Asset Management at Arbor and a CRE Finance Council (CREFC) Young Professionals Network member, was selected as one of the network’s ambassadors at CREFC Miami, giving him a golden opportunity to expand his professional horizons.
Although the single-family rental (SFR) sector’s profile expanded after the 2007-2010 subprime mortgage crisis, the number of its households slid between 2016 and 2020 as many rentals transitioned into owner-occupied homes. Following a period of pandemic-related uncertainty, SFR has returned to growth mode, increasing its number of households for the second time in three years.
Arbor’s Special Report Spring 2025, developed in partnership with Chandan Economics, covers the state of the U.S. rental housing market on the cusp of a new cycle. After a year of steady growth, favorable trends put wind in the sector’s sails, giving rise to budding optimism. With the economic landscape shifting, the rental housing market’s resilient performance in 2023 and 2024 provides a solid foundation for continued growth.
Arbor offers flexible solutions customized for your growing rental portfolio.
Arbor provides single-family rental (SFR) portfolio investors with an array of short-term and long-term financing options to fit their investment strategies. Whether you are looking to develop a build-to-rent community, purchase properties and hold for the long-term or acquire investments to rehab, our loan products help you get there quickly and with certainty.
Single-family rentals represent more than half of the rental market
There is an immediate and growing demand for workforce and affordable housing
Single-family rentals have become one of the fastest-growing asset classes
Enjoy easier financing, faster closing times, appreciation tied to neighborhood growth and fewer regulations
Flexible options for seamless financing, including bridge-to-permanent loans
Multifamily experience, expertise and reputation
Personalized service and customized solutions
Expert in-house servicing for the life of the loan
Local market expertise nationwide
Still growing your single-family rental portfolio? Arbor’s in-house bridge loan platform can provide you with the short-term financing necessary to scale up your portfolio in order to qualify for a long-term loan solution.