There was a big change in the multifamily lending market when Fannie Mae and Freddie Mac were given $30B to dole out. Now they're tapping the brakes because they’ve already used two-thirds of that, says Berkadia SVP and managing director Stuart Wernick (left, with Hunt Mortgage Group VP Colin Cross and Cadence McShane Construction president Will Hodges). Colin says the GSEs aren’t going to hit their 50% goal of lending to affordable housing, leading them to re-evaluate what is or isn’t affordable. (The most appealing GSE deals today aren’t the Class-A Uptown projects, but the ‘70s and ‘80s low-income properties in the mid-cities.

Milestone Apartments REIT CFO Ryan Newberry says Fannie and Freddie are the primary players in multifamily because of their rates, but pricing and the models will likely change. He’s seeing double-digit rent growth in some markets, but wages have been flat. Without pay bumps, he’s concerned whether the continued rental rate growth can continue.