Multifamily Lending Growth To Taper Off
The business of lending on multifamily real estate has been growing quickly over the past few years, with lenders increasing the volume of apartment loans made by well over 10% in 2015. But growth is expected to level off in 2016.
MBA projects lenders will originate $224B in permanent loans to multifamily properties in 2015, up 15% from the $195B lent in 2014, National Real Estate Investor reports. Likewise, the lending volume in 2014 was 13% more than in 2013, which was up 18% from 2012. That kind of growth isn't sustainable forever.
Banks and agency lenders are among the fastest-growing lenders in 2015, with $15B in outstanding mortgage debt to commercial and apartment properties in Q2. It's projected that lenders will originate $225B in permanent loans on apartment properties in 2016, and $227B in 2017. [NREI]