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Experienced CRE Finance Professional | AI & Data Analytics Enthusiast | Championing Small Balance Commercial Lending

Single-Family Rental Investment Trends Report Q2 2024 The Q2 2024 Single-Family Rental (SFR) Investment Trends Report by Arbor and Chandan Economics underscores the sector's robust growth and resilience despite broader economic challenges. Here’s a summary of the key insights from the report: Key Highlights: Record Construction Starts: SFR and build-to-rent (BTR) construction starts reached record highs, driven by increasing demand. CMBS Issuance Surge: Commercial Mortgage-Backed Securities (CMBS) issuance for SFR rose to $1.9 billion in Q1 2024, the highest quarterly total since mid-2022. Cap Rates Increase: The SFR sector saw cap rates rise to 6.6%, influenced by high interest rates and strong rent growth. Stable Occupancy Rates: Occupancy rates remained robust, averaging 94.7% in Q1 2024, indicating sustained tenant demand. National Rent Growth: SFR rents increased by 5.0% year-over-year, demonstrating the sector's ability to maintain strong rental income growth. Rising Debt Yields: Debt yields increased to 10.9%, reflecting lenders' cautious approach in the current economic climate. Valuation Trends: The average valuation for SFR properties with Fannie Mae mortgages saw a decline, indicating investor caution amidst market uncertainties. Market Stability: Despite high mortgage rates, there was little to no distress in the housing market, showcasing the sector's resilience. Performance Metrics: CMBS Issuance and Origination: The increase in CMBS issuance was primarily driven by new acquisition loans, highlighting the continued investment interest in SFR properties. Debt Yields and Lending Practices: Lenders remained diligent, maintaining high debt yields to mitigate risks in the lending environment. Outlook: The long-term outlook for the SFR sector remains optimistic, supported by strong market fundamentals and increasing demand from a diverse renter base. The sector is expected to continue its growth trajectory, driven by favorable demographic trends and sustained investor interest. #arbor #chandaneconomics #sfr #singlefamilyrentals #housing #economy #cmbs #btr #affordability

Single-Family Rental Investment Trends Report Q2 2024 - Arbor Realty

Single-Family Rental Investment Trends Report Q2 2024 - Arbor Realty

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