As the cost of living in the U.S. climbs, the shortage of affordable housing is a persistent challenge for many communities. While progress has been uneven to date, Arbor Realty Trust and Chandan Economics document federal and state initiatives aimed at creating positive change. In a sector known for its strength, stability, and consistency, new and old affordable housing opportunities are converging as the nation accelerates construction.
FRDDIE MAC® Conventional Forwards Arbor’s Freddie Mac® Conventional Forwards encourage the creation of new housing supply by providing takeout certainty to developers and construction lenders, helping to address long-term supply shortages that limit affordability and housing choice. In an evolving multifamily lending environment, our Conventional Forwards provide clarity to the terms of the permanent debt needed when a property stabilizes after new construction or major rehabilitation.
As has been the case throughout this cycle, the top rent growth markets over the past 12 months represented several regions, all with varying strengths and characteristics.
Arbor Realty Trust’s Small Multifamily Investment Trends Report Q4 2025, developed in partnership with Chandan Economics, outlines the long-term positives reinforcing the sector’s growth amid macroeconomic uncertainty. With capital market activity poised to increase, small multifamily’s healthy fundamentals position it to trend higher in the next cycle.
The U.S. multifamily market demonstrated clear signs of stabilization during the third quarter of 2025, as supply imbalances eased and investment activity climbed.
Find answers to common questions about multifamily and single-family rental real estate financing.
As headwinds fade and transaction volume rises, market knowledge is a critical advantage to commercial real estate investors. The Arbor Realty Trust-Chandan Multifamily Opportunity Matrix analyzed a wide range of factors within the 50 largest U.S. metros to assess market strength and durability. From maturing, dynamic metros to affordable, opportunity-rich markets, our biannual report is a roadmap to the top locations for capital deployment.
Sponsors today are increasingly choosing bridge lending solutions to capitalize on opportunities during the lease-up and stabilization phases, with multifamily completions projected to remain elevated through 2030. Bridge loans, when paired with a lender equipped to support your investment needs from construction through permanent financing, can effectively position borrowers for long-term success.
While the impact of COVID-19 contributed to a 0.9% decline in small multifamily prices in the first quarter of 2020, they are still up 5.5% from a year ago.
Chandan Economics’ analysis noted that annualized first-quarter small multifamily loan value fell to $55.2 billion, representing a 6.7% decline in lending activity compared to last year. Yet the report provides reasons for reassurance. The dependability of underlying multifamily demand and the agencies’ commitment to providing programs that maintain market liquidity support the sector’s traditional resiliency. Even with the uncertainties caused by the coronavirus, multifamily is expected to outperform other sectors.
Download the full report, “Q1 2020 Small Multifamily Investment Trends Report,” for the latest updates covering the following:
