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Multifamily lending accounted for more than half of 2024’s CRE mortgage activity.

Multifamily Drives CRE Lending’s 16% Gain

After a sharp pullback in 2023, CRE lending activity staged a comeback in 2024, though it remains well below peak levels seen two years prior.

Regaining ground: The Mortgage Bankers Association (MBA) estimates total CRE borrowing and lending reached $498B in 2024, marking a 16% jump from $429B in 2023. However, volume is still 39% off the 2022 high of $816B. Of the total, $411B came from dedicated mortgage bankers—up 34% YoY—while the rest was attributed to smaller and mid-sized lenders.

Multifamily leads the way: Multifamily properties drove the recovery, accounting for an estimated $326B in total lending, with $219B of that directly tracked through mortgage bankers. These loans were primarily first liens, which made up 92% of the dollar volume. The data underscores strong investor appetite and relatively favorable agency support in the multifamily segment.

Key capital players: Depositories topped the list of capital sources, followed by life companies, pension funds, CMBS issuers, GSEs (Fannie Mae and Freddie Mac), and investor-driven lenders. Mortgage bankers were also active as intermediaries and brokers, handling $303B in intermediary transactions and $247B in investment sales deals.

Refinancing wave ahead: With an estimated $957B in CRE mortgage maturities due in 2025, refinancing needs could sustain lending momentum, despite ongoing market volatility and rate sensitivity.

➥ THE TAKEAWAY

Looking ahead: While not a full return to the boom days of 2022, 2024’s lending rebound suggests a thaw in capital markets, especially in multifamily, just in time for what’s shaping up to be a high-stakes year for refinancing.