“Reimagining the American Dream: How Lifestyle Renters Are Transforming Modern Living”

According to a recent survey by Entrata, four out of ten renters in sizable multifamily apartment communities do not view homeownership as part of their American Dream. Instead, lifestyle renters prefer newly built, high-quality rental properties that offer many of the usual conveniences of homeownership without the associated drawbacks.

The inherent strengths of the single-family rental market significantly surpass cyclical challenges, as it remains well-equipped to capitalize on its momentum into 2025 and beyond.

In 2023, multifamily households attained a new peak for the third consecutive year, prolonging a growth phase that began following the 2008 housing crisis. With strong support factors, the latest record for multifamily may not last for long.

The U.S. multifamily market maintained stability within a more normalized cycle in 2024, subsequent to the economic downturn caused by the pandemic and its swift recovery. Rental demand stayed strong, propelled by the ongoing national housing scarcity and substantial wage growth, as younger demographics continued to adopt lifestyle renting.

Unless an agreement is reached at the last minute, a stalemate will initiate the first U.S. government shutdown since 2019. Beginning December 21, 2024, numerous non-essential federal operations will face restrictions or suspension, although most multifamily financing tasks will remain unaffected.

As housing prices approach record levels, single-family rental (SFR) properties are uniquely situated to seize a larger share of the for-sale market. With capital markets rebounding, SFR will benefit from favorable conditions like substantial levels of new construction and positive trends in cap rates and debt yields. Arbor’s Single-Family Rental Investment Trends Report, produced in collaboration with Chandan Economics, elucidates the strong prospects of this sector.

In an effort to foster inclusivity for individuals from diverse backgrounds, Arbor — in collaboration with the Real Estate Pride Council and Dr. Sam Chandan, Founder of Chandan Economics, Founding Director at NYU Stern School of Business C.H. Chen Institute for Global Real Estate Finance, and Co-Chair of the Real Estate Pride Council — hosted a speed networking event in Manhattan on November 20 for local LGBTQIA+ students and mentors in commercial real estate.

Small multifamily continued to soften through the middle of 2024, amidst robust demand in spite of a heightened interest rate environment and increasing property-level yields.