This week’s selection of news covers the current economic realities of real estate investments as well as updated research on the fundamentals which continue to support multifamily as a strong asset class. We start off with an Intercontinental Exchange podcast, where I was interviewed on both the short- and long-term impacts of the COVID-19 pandemic on multifamily. In our Chatter blog, Arbor Realty Trust and Chandan Economics articles review the headwinds multifamily faces and the data pointing to cap rate stability. Multifamily Executive provides an assessment of why multifamily “has so far defied gravity,” considering the coronavirus-related job losses. Finally, GlobeSt highlights an Apartment List report, indicating renters are searching locally or in smaller markets outside the 50 largest markets that typically dominate search volume. 

Arbor Realty Trust CEO Ivan Kaufman Builds an Empire from Multifamily Homes (Podcast)

Intercontinental Exchange – August 24

“Ivan Kaufman, Chairman and CEO of Arbor Realty Trust, Inc. (NYSE:ABR), has had a front row seat as technology, combined with economics, urban flight, and commoditization has upended the real estate market.”

Navigating the Headwinds: Multifamily Amid COVID-19

Arbor Chatter – August 31

“While tenant performance measures have taken a marginal hit, they have stabilized and held up better than early predictions had suggested.”

Falling Risk-Free Rates, Rising Risk Premiums Lead to Small Multifamily Cap Rate Stability

Arbor Chatter – September 2

“Falling risk-free interest rates have the effect of reducing cap rates, while increased operational risks have the effect of widening cap rates. When both phenomena happen at the same time, the net result is cap rate stability.”

Byrum: Positive Signs for the Multifamily Sector

Multifamily Executive – September 1

“During the start of the COVID-19 pandemic, apartment residents froze in place, with the nation seeing the highest renewal rates in April.”

Inbound Migration Drops in the Largest Metros

GlobeSt – September 3

“Affordable markets are seeing a boost in rental interest, especially if they are in driving distance of large job centers.”