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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]
