The Mortgage Bankers of America (MBA) are predicting close to $578 billion in loans closed for commercial and multi-family properties this year. This number includes $409 billion in multifamily lending, which would constitute a new record and a 13% increase over 2020’s $360 billion.
Delinquency rates stable
In another positive sign for multi-family commercial real estate, the CBA reported that loan delinquency rates for these properties have remained low and stable for the past year — largely thanks to strong federal housing support. In contrast, lodging and retail properties saw much larger delinquency spikes during the height of the pandemic.
The multi-family real estate market seems to have well and truly moved on from the hardships of the pandemic. This market is now seeing:
- Property appreciation.
- Increased transaction activity.
- Rebounding investor interest.
With so much going for it, odds are high that the multi-family market’s growth won’t stop with 2021. The MBA is already forecasting an impressive $597 billion for 2022.