Did multifamily market meet banner year expectations?

MBA report reveals state of the market

Did multifamily market meet banner year expectations?

Figures from the Mortgage Bankers Association revealed that the multifamily market powered through a tough 2020, with origination volume reaching $359.7 billion during the year.

MBA reported Thursday that multifamily lenders financed a total of $359.7 billion in new mortgages for apartment buildings with five or more units. That figure was just 1% below 2019’s record level of $364.4 billion. However, that fell short of MBA’s expectations that multifamily lending would jump 9% from 2019 to $395 billion in 2020.

Read more: MBA expecting a banner year for commercial/multifamily space

“Multifamily borrowing and lending remained strong in 2020, despite the COVID-19 pandemic,” said Jamie Woodwell, vice president of commercial real estate research at MBA. “Robust financing for properties increased refinancing activity through government-backed loans, and consistent mortgage availability from banks led the market to a level of mortgage originations that was essentially flat from the record year of 2019.”

Almost half (46%) of the $359.7 billion of multifamily mortgages originated last year went to mortgage giants Fannie Mae and Freddie Mac.

The top five multifamily lenders in 2020 by dollar volume were Walker & Dunlop, Berkadia, CBRE, Wells Fargo, and Greystone.