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MBA: Multifamily Mortgage Lending Down Nearly 50% in 2023
Multifamily lenders provided a total of $246.2 billion in new mortgages for apartment buildings with five or more units in 2023, a 49% year-over-year decrease, the Mortgage Bankers Association (MBA) said Thursday. Fifty-one percent of the active lenders made five or fewer multifamily loans over the course of the year, according to MBA’s annual report on the multifamily lending market.
“Multifamily lending fell by roughly half in 2023 as sales transactions declined and far fewer property owners sought to refinance their loans,” said Jamie Woodwell, MBA’s head of commercial real estate research. “The analysis shows that even with the drop in activity, the multifamily lending market remains broad and deep, with more than 2,500 different lenders making more than 36,000 mortgage loans backed by multifamily properties in amounts ranging from tens of thousands of dollars to hundreds of millions.”
The $246.2 billion of multifamily mortgages originated in 2023 came from a variety of sources. By dollar volume, the greatest share (42% of the total) went to Fannie Mae and Freddie Mac. The top five multifamily lenders in 2023 by dollar volume were Berkadia, Walker & Dunlop, JPMorgan Chase, CBRE and Greystone.
- ◦Financing
