Arbor Realty Launches Index to Close Affordable Housing Supply-Demand Gap

➤➤ Join the GlobeSt.APARTMENTS (formerly RealShare) conference October 29-30 in Los Angeles. The event will analyze the opportunity in the emerging trends and conditions of the multifamily market. Don’t miss out on joining the 1000+ of the industry’s top owners, investors, developers, brokers and financiers as they gather for THE MULTIFAMILY EVENT OF THE YEAR! Click here to register and view the agenda.

NEW YORK CITY- Arbor Realty Trust Inc., a real estate investment trust headquartered in Uniondale, N.Y., has partnered with data firm Chandan Economics to launch the Arbor Small Multifamily Price Index.

Demand for affordable rental housing continues to outpace supply, and the new index data plans to close that gap by highlighting potential investment opportunities in the sector.

The new multifamily index will measure price appreciation on small multifamily properties nationwide and compare model estimates of small multifamily rents and multifamily cap rates. Properties will include those with 5 to 50 units and with first mortgages of $1 million to $7.5 million.

“The Arbor Small Multifamily Price Index is a new and important tool that will allow investors to distinguish how properties in the small multifamily market are trending, in comparison with other subsets of the real estate market,” said Ivan Kaufman, chairman and CEO at Arbor Realty Trust, in a prepared statement.

Prices for small multifamily properties are up 1.3% from Q1 2019 and 6.9% from Q2 2018. Also, small multifamily property prices have increased by over 78% since post-recession in 2010, and they are above their high by 36% from the previous cycle, according to data from the ASMPI.

“With small multifamily properties making up about 32 percent of total U.S. rental inventory, this sector is becoming increasingly important to our nation’s workforce,” said Sam Chandan, founder of Chandan Economics, in a prepared statement.