The repercussions of the Fed's early efforts to stave off the economic disaster caused by Covid through measures to stimulate the economy like zero interest rates and buying up mortgage-backed securities are about to ripple through the multifamily sector, according to Newmark's 2023 U.S. Multifamily Capital Markets Report.

"Multifamily received tremendous capital inflows during the pandemic liquidity bubble of 2020 to the first half of 2022. This was reflected both in transaction activity, as well as pricing for both debt and equity," the report noted. "Now these loans are coming due and in a very different environment than when they were originally issued."

Newmark's data shows that $87 billion of multifamily loans originated during the bubble will mature in 2023, $96 billion in 2024, and $63 billion in 2025. Those loans will mature at a time of higher debt costs and more restrictive bank lending practices.