CBRE has reviewed a multifamily underwriting survey for 2024 Q4 of 18 different markets. It reported that underwriting assumptions for core and value-added multifamily properties were mostly unchanged. However, there was “substantial movement” in unlevered IRR targets for core assets, which increased.

One of the trends in lending over the last few years, based on Federal Reserve reports, has been banks tightening underwriting in CRE lending. Seeing that underwriting is largely stabilizing, at least in the one asset class, would be a sign of improvement.

However, CBRE did note that much is still unknown about how the Trump administration might affect economic growth, inflation, and the housing market. Lenders might have paused to assess what might happen this year and any changes they might need to make in response.