Multifamily Lending Hits All-Time High in 2021

The Mortgage Bankers Association reported today (8-2-22), in its annual report on the multifamily lending market, that in 2021 there were 2,215 different multifamily lenders that provided a total of $487.3 billion in new mortgages for apartment buildings of 5 or more units.

The 2021 multifamily total of $487.3 billion represents an increase in volume of 35% over 2020’s multifamily total of $359.7 billion. Thirty-two percent of the active lenders made five or fewer multifamily loans over the course of the year.

In remarks prepared to accompany the release of the 2021 report, Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research, said:

“2021 saw a record level of borrowing and lending backed by multifamily rental properties. Strong property fundamentals, rising values, and low interest rates all contributed to the jump in volume, as well as strong demand from every capital source to make multifamily loans. The mix of lenders in the data show the depth and diversity of the apartment lending market.

The first half of 2022 saw continued lending momentum, but significant changes in equity and debt markets—due to higher interest rates and economic uncertainty—have affected the demand and supply of debt. Our latest forecast anticipates that 2022 volume will fall 10 percent from last year’s record levels.”