Bolstered by robust build-to-rent (BTR) activity, the single-family rental (SFR) sector continued to display strength even as the residential housing market moderated. Arbor’s Single-Family Rental Investment Trends Report Q2 2025, developed in partnership with Chandan Economics, provides original research and analysis of key performance metrics for investors to take a closer look at a sector on the rise.
Amid ongoing macroeconomic uncertainty, the small multifamily sector remains favorably positioned for stability as the structural need for affordable housing in the U.S. has supported the strength of the sector’s demand profile.
As build-to-rent (BTR) demand rises, single-family rental (SFR) development has become more efficient in creating a distinct, community-focused experience for renters. Newly released U.S. Census Bureau data confirms that SFR/BTR development continues to be robust and stable, with its annualized pace of construction in the first quarter of 2025 matching the previous quarter’s tally.
Arbor, which takes pride in empowering employees to reach their full potential, supported the 11th Annual Smile Farms Golf Outing on May 19, benefiting the Long Island-based organization dedicated to advancing opportunities for people with disabilities.
Arbor executives mentored more than 50 students from across the country this spring in two new Project Destined programs, representing the largest group and, perhaps, our most impactful cycle of this ongoing partnership.
Tenant retention is a valuable — though sometimes elusive — contributing factor to the strength of a multifamily property. Nationally, 29% of multifamily households signed a third lease for the same unit, according to an analysis of the U.S. Census Bureau’s American Community Survey. Locally, renter turnover was lowest in major coastal markets, like New York City, and highest in transient renter markets, like Charleston, SC.
While markets undergo rapid recalibration, the small multifamily market’s performance remains strong and stable. Arbor’s Small Multifamily Investment Trends Report Q2 2025, developed in partnership with Chandan Economics, details how the sector’s resilient fundamentals effectively support its growth amid ongoing economic volatility.
FREDDIE MAC® Proprietary Preferred Equity behind Conventional Loans Arbor now offers access to proprietary preferred equity behind all Freddie Mac Conventional loans we originate. With Arbor, you can simultaneously secure a senior loan and preferred equity under one roof, streamlining your experience throughout the lifecycle of your loan.
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The owner of a California apartment community wanted to add 12 new units to a multifamily complex located in the heart of the South Bay region of Los Angeles. This repeat Arbor borrower utilized a short-term, variable-rate bridge loan in part to finance the new units; later, the owner sought to convert their bridge loan to permanent, long-term, fixed-rate financing. The borrower was also interested in exploring how enrolling in green financing could provide additional cost savings.
Arbor thoroughly examined the borrower’s position and cash flow and determined they would benefit most from securing a long-term fixed-rate loan through Arbor’s versatile FHA 223(f). We then educated the apartment complex owner about the U.S. Department of Housing and Urban Development’s (HUD) green program and how it could benefit them. Next, we worked closely with our partners at HUD to secure our borrower a fixed-rate FHA 223(f) loan with permanent financing that would maximize net operating income (NOI) as the asset accumulates cash flow.
In response to market conditions, Arbor acted quickly. Through our long-standing relationships at HUD, we expeditiously generated a firm commitment for our borrower and closed within 30 days. The entire Bridge-to-HUD process took only 15 months. They received long-term fixed-rate permanent financing to add units to an upscale apartment community, which includes a gym, a swimming pool, and electric solar panels. Our borrower was then able to lock in a highly competitive rate with additional cost savings available through HUD’s green program. The accommodation of the 12 new units within the underwriting process went seamlessly, resulting in expeditious execution that eliminated interest volatility and, ultimately, maximize loan proceeds.