Insights from the Freddie Mac Multifamily team.
In our research, we find that strong economic growth and the robust labor market continue to support the strength in the multifamily market. 2018 ended much stronger than anticipated with near record absorptions and stronger rent growth compared with the prior few years.
Since we launched Optigo℠ earlier this year, the name that once drew many questions has become a natural part of our daily business conversation. We use it every day as we talk about the advantages of our Optigo loans, the reach of our Optigo network and the special relationship between Freddie Mac and Optigo lenders. But we still get many questions about why we created the name and what it stands for.
Recent research shows that an increasing number of multifamily units are not affordable for low- and very low-income households.
We are continually finding new ways to provide liquidity for affordable housing and our Private Placement PC Swap is the latest example.
Rental affordability is a significant challenge for metropolitan statistical areas across the United States. Our research shows that supply just hasn't kept pace with demand in many metros, and that's pushing affordable rents out of reach for millions of American families.
Housing affordability is an uphill battle – but the SBL team will not be deterred.
We had another outstanding year and I encourage all our lenders, servicers, investors, borrowers and staff to enjoy a quick moment of pride from all that we accomplished together.
We had another record year in 2018 – thanks to our dedicated staff, our network of top Seller/Servicers and our continually expanding investor base.
It's another record high in Targeted Affordable Housing volume. Read about 2018 highlights and how we're making a difference in communities nationwide.
In our research, we find that performance in the multifamily market remained healthy during 2018, despite high levels of new supply entering the market. We expect this trend to continue into 2019, but with more modest growth in comparison to recent years.
Increasingly, energy and water savings are bolstering the bottom line of multifamily property owners and their tenants' budgets - and the Freddie Mac Multifamily Green Advantage® program has made this more and more possible.
I know it sounds cliché, but there really is no place like home – especially one where you make home possible for others. That's what Freddie Mac is to me.