Single-family rental (SFR) investing is surging as this asset class outperforms. With homeownership less attainable and lifestyle renting more popular, the sector’s tailwinds bode well for long-term growth. If you are new to this space, our guide has answers to commonly asked questions.
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.
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Units
St. Louis
Year Built
Experienced multifamily owners were looking for a refinance on a 314-unit apartment community located in the St. Louis metro area. The sponsors originally built the property in two phases, in 2003 and 2009, as a condo development. However, due to softening in the condo market, a portion of the unsold units were operated as multifamily. The sponsors bought back the sold condo units in 2018 to operate the whole community as multifamily rentals.
Arbor assisted the sponsors with securing a bridge loan in 2019 for the completion of renovations and stabilization of the property, which was only at half occupancy at the time. As of June 2020, the property reached over 90% occupancy and the borrowers were ready to refinance due to the increased value of the asset. The borrowers have a long-term relationship with Arbor and Fannie Mae, so they were comfortable working with Arbor to secure the right financing for their investment needs.
Arbor’s underwriting and originations departments were tasked with demonstrating the sponsors’ continued commitment to the property. Arbor was able to point to the borrowers’ nearly two decades of ownership, local market expertise and investment in improving the asset’s quality and occupancy, which helped support the agency requirement that the borrower possess strong experience and a proven track record.
Arbor executed a 15-year fixed-rate loan under the Fannie Mae DUS® loan program. As a result of the transaction, the borrowers were able to refinance at a low interest rate.