Dwight Securities Management LLC has raised funds to originate $1B worth of multifamily construction loans across the U.S.
The Dwight & Co. affiliate is targeting market-rate projects between $30M and $200M, according to a press release.
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The money raised is indicative of institutional demand for asset-backed credit in the multifamily sector, Dwight CEO Adam Sasouness said in a statement. It is offering floating-rate loans at up to an 80% loan-to-cost ratio.
Dwight has closed $3B worth of loans this year as it works to expand its $13B servicing portfolio.
The news comes as the housing shortage in the U.S. has become increasingly intense. Rent prices have continued to outpace inflation in 2025, albeit at a slower pace than in past years, and homeownership remains unattainable for many young Americans.
The market is short at least 2 million units, CBRE said in an August report, while Zillow placed the figure at 4.7 million units in July. The National Low Income Housing Coalition concluded in a March report that the nation needs 7.1 million more affordable rentals to accommodate extremely low-income Americans.
This has led to bleak public opinion about the housing market. Consumer confidence in the sector fell by 24% in the two years leading up to June, according to a second-quarter multifamily report from Newmark.
Multifamily construction boomed during the pandemic but cooled off in 2024. There have been some signs of a recovery this summer, however. Starts are higher than they were this time last year, according to new data from the Census Bureau. About 403,000 units broke ground last month, up almost 16% from August 2024. That figure does represent a 7% decline from July, however, which was a particularly strong month for U.S. multifamily starts.
According to the Census Bureau report, multifamily permit rates also dropped 2.8% last month, indicating that the pipeline is constricting. Housing analysts predict the multifamily market will remain cool in 2026.
Developers have been cautious about overbuilding after the market faced a glut of loans ahead of the Great Recession, Dwight Mortgage Trust Chief Operating Officer Jai Agarwal told Bloomberg.
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