Data from the Department of Housing and Urban Development shows that HUD multifamily and healthcare property lending is at a triple witching low, according to an analysis by Trepp.
Whether counting the number of loans, building units, or money volume, the agency’s fiscal year (October through December) 2024 has been a disaster through the third quarter. If the pace continues as it has, the results will have been the lowest since 2012.
In the first three quarters — October 2023 through June 2024 — the totals were 51,985 units, $6.97 billion in dollar volumes, and 374 loans to date.
The closest comparison in the last 13 years was 2023, with 95,469 units, $12.41 billion in dollar volumes, and 711 loans. Granted, that was with four quarters, but take the current fiscal year’s figures, add an additional third to each, and the totals would be 69,140 units, $9.27 billion in dollar volumes, and 497 loans.
Since 2012, the next lowest fiscal year was 2015, with 178,825 units, $13,596.91 billion in dollars, and 1,320 loans. Look at 2021: 322,163 units, $38,122.98 billion, and 2,139 loans.
The year 2013 had $25,581.15 billion, 2,709 loans, but a whopping 391,104 units.
The third quarter of 2024 may not have been outstanding, but it was better than the second quarter’s 108 loans and $1.81 billion. However, Q3 was still down 8% from the same period in 2023.
The most active lender in the first three quarters of fiscal year 2024 was the New York Housing Development Corporation. It originated two loans for $344.65 million. The next four were Greystone Funding Co. (11 loans, $257.72 million); Regions Bank (10 loans, $216.26 million); Berkadia Commercial Mortgage (10 loans, $210.56 million); and Dwight Capital (6 loans, $135.34 million).
One of the two loans the New York Housing Development Corporation originated was “a balance of $315.17 million for the construction of two additional buildings, F and G, with a total of 1,132 units at the Hunter’s Point South/Gotham Point mixed-use complex in Long Island City, N.Y.” Building F will have 680 units on 56 floors while Building G will have 450 units on 33 floors.
The first five performed differently in the third quarter of 2023: New York Housing Development Corporation (1 loan, $17.92 million); Greystone Funding Co. (19 loans, $427.72 million); Regions Bank (1 loan, $12.87 million); Berkadia Commercial Mortgage (10 loans, $246.09 million); and Dwight Capital (12 loans, $259.91 million).