Close to one-third of renters live in smaller properties with five to 50 units, many of which are affordable to low- and very low-income households. Given the importance of this housing segment, our latest Multifamily Research Perspectives report examines lending aimed at smaller properties and loan balances of $1 million to $5 million – or small balance loans (SBLs).
The report busts some myths about the risks of SBLs and explores challenges that the industry has faced in this area. It also considers the past and potential future involvement of the secondary mortgage market, particularly the government-sponsored enterprises (GSEs). And it describes how Freddie Mac Multifamily is tackling some of the long-standing challenges. The goal: Increase liquidity, stability, and consistency across this vital segment.
Read our “Small Balance Loans” research report for these details and more.
Learn about Freddie Mac Multifamily’s SBL offering on our web site.
Have a comment or question? Email us to let us know what's on your mind.
Insights and perspectives from Freddie Mac staff on current topics and events related to housing and the Multifamily industry.
David Leopold
VP Targeted Affordable Sales & Investments
Steve Guggenmos
VP Research & Modeling
Steve leads multifamily related research at Freddie Mac. In this role he performs research related to national and market-specific multifamily conditions. His team supports the multifamily business by developing models and quantitative approaches that determine risk-based capital allocations. The models capture loan level risks and also the benefits of the diversification and structural credit support for pools of multifamily mortgages, supporting the core business strategies of Freddie Mac Multifamily.
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.
Performance in the multifamily market remained healthy in the first half of 2018, and is expected to continue throughout the second half of 2018 and into 2019, but with continued moderation from the prior few years.
Market rate multifamily rents have been dramatically increasing in recent years as housing demand significantly exceeds available supply. In contrast, during the same period rent growth has been moderate for units with restricted rents, such as those funded by the Low-Income Housing Tax Credit (LIHTC) program.
More of the same! By most measures, the multifamily market will continue to grow with moderately increasing demand, with the growing population fueling the rental housing market.
Through the first half of 2017, the economy's growth continued to support strong multifamily fundamentals, while the market continued to moderate on a national level.
Steve Guggenmos, Vice President, Research and Modeling, provides the answer.
By the end of 2015, the multifamily industry was closing out five years of an unprecedented run of success. Are we slowing down?
Millennials moving out of their parents homes and aging baby boomers are increasing the number of older renters, making rental demand strong.
Two years ago, the oil and gas industry was booming in the United States with the price of oil over 00 a barrel.
The multifamily market accelerated in 2015 and will build on that momentum this year.
'The decade-long surge in rental demand is unprecedented;' according to a Joint Center for Housing Studies of Harvard University (JCHS) report released December 9.
The multifamily market’s winning streak will continue for the next few years, we found in our latest research. The Multifamily Outlook Second Half 2015 reports our findings and the details behind them.
The Joint Center for Housing Studies of Harvard University recently released its annual The State of the Nation's Housing report. It's an interesting read with plenty of useful information for those of us in housing finance.
Austin and Nashville – two great music cities, two strong economies, both with strong multifamily markets since the Great Recession.
With summer vacation season upon us and gas prices lower per gallon than a year ago, the benefits of lower oil prices to consumers are apparent.
We just released our Multifamily economic outlook for 2015. The forecast is for another strong year, albeit at lower levels than in 2014.