Finally, some good news for the multifamily sector. Lending and borrowing are expected to go up this year, according to a new analysis from the Mortgage Bankers Association (MBA). Other commercial sectors should also see more money flowing in.
In total, MBA predicts $576 billion in loans will flow into CRE and multifamily in 2024– up 29% from 2023's estimated $444 billion. Of the total, multifamily will absorb $339 billion – 25% more than in 2023. Next year, 2025, could be even better, totaling $717 billion for all CRE and $404 billion for multifamily lending.
Welcome as the news may be, lending and borrowing in 2024 will still not match 2017 levels. After the slowest year in a decade, the expected market reset will represent only a marginal pickup, said Jamie Woodwell, MBA's head of CRE research.
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