Solar panel installations, which skyrocketed in the U.S. over the last half-century, are projected to double to 10 million in just six years. While installations soared in all types of residences, owner-occupied properties significantly outpaced rentals. However, the evolving economics of solar power may be approaching a tipping point for single-family rental (SFR) operators looking for a differentiator.
Even amid ongoing economic volatility, SFR continues to be a well-positioned asset class that is expected to follow stable growth patterns.
This spring, Arbor is doubling down on our commitment to aspiring commercial real estate students through our partnership with Project Destined by helping to launch the first-ever Women’s Fellowship and with our participation in the Project Destined Bridge Program.
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.
Nationally, vacancies have risen, but the performance of rental housing is extremely localized. Out of the 75 largest U.S. metropolitan areas, the occupancy rate for all types of rental properties, including single-family rentals, 2-4 family, multifamily, and mobile homes, increased in 36 markets last year, while exceeding 95% in nearly one-third of all markets, according to an analysis of newly released U.S. Census Bureau data.[1] From Grand Rapids, MI, to Columbia, SC, the top markets for rental occupancy show where conditions are tightest and demand is strongest.
Arbor’s Single-Family Rental Investment Trends Report Q1 2025, published in partnership with Chandan Economics, is an up-close look at the single-family rental (SFR) sector as it enters a period of normalcy after explosive pandemic-era growth. SFR maintains its balance with the support of a healthy set of fundamentals while capital markets rebound and rent growth moderates.
Small multifamily price growth trends indicate a stabilization may be ready to take hold. Expanding on the findings of Arbor’s latest Small Multifamily Investment Trends Report, our research teams more closely examined valuations to determine if trends in pricing and other fundamentals are supporting a turnaround.
Elevated mortgage interest rates and high home prices boosted demand for single-family rentals (SFR) last year, supporting the growth of rents in almost all of the 100 largest metropolitan areas. Pricing momentum, which averaged 4.5% nationally, was concentrated in affordable markets in the Northeast and Midwest, an analysis of Zillow’s Observed Rent Index data shows.
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Inman Equities, a repeat Arbor borrower, was looking for a bridge loan to finance the acquisition and conversion of a student housing property into a market-rate traditional multifamily development. Once the property was stabilized, Inman Equities wanted to pursue permanent financing for a property they felt had tremendous upside potential. The borrower was also interested in making Canyon Park Apartments a “green” community with financing that would reduce energy and water consumption.
First, Arbor’s Eugene Yanovskiy, VP, Sales, worked with Inman Equities to secure an Arbor Bridge Loan to finance the acquisition, conversion, and rehab of a Tallahassee, FL, student housing development. After the property was converted to market-rate multifamily housing, Yanovskiy partnered with Inman Equities again to secure a Fannie Mae Standard DUS® loan to permanently finance the property. Canyon Park Apartments was also enrolled in Fannie Mae Green Rewards, a program that provides more favorable pricing and funds green upgrades that reduce a property’s carbon footprint.
Inman Equities secured $29.5 million in financing to renovate, remodel, and enhance the student housing development, which would become an apartment community with shared amenities, such as a pool, pickleball courts, and outdoor grilling stations. Arbor’s strong industry relationships made the process seamless and timely. After enrolling in Green Rewards, Inman Equities received a lower interest rate and incentives to make environmentally friendly improvements that add value to the property.