Freddie Mac Predicts Multifamily Origination Record for 2017

Jul 31, 2017

Multifamily origination volume could hit a new record this year, reaching between $270 and $280 billion, according to a forecast from Freddie Mac that cited a robust marketplace during the past six months.

"In the first half of 2017 multifamily performance, by most measures, remained near the historical average in the majority of markets across the country," said Steve Guggenmos, Freddie Mac Multifamily Vice President of Research and Modeling.

Freddie Mac also forecast a peak in the number of construction projects in 2017 or early 2018, which could drive vacancy rates higher. As a result, the absorption of new units in some areas will take longer than in prior years, thus creating downward pressure on rent growth. Freddie Mac added that this year should end with nearly two-thirds of major metro areas experiencing vacancy rates below their historical averages.

“All things considered, 2017 will be yet another good year for the multifamily market,” said Guggenmos. “And importantly, it will not be the market's last strong year. Strong demand, fueled by demographic changes and lifestyle preferences, will ensure the multifamily market's continued strength in the years ahead.”

About the author

Phil Hall

Link copied

Published

Jul 31, 2017

Industry News

UWM, UMortgage Under Attack For Alleged Shell Scheme

A report released on April 25 by the hedge-funded media company alleges UWM set up a shell company, UMortgage.

Just weeks after allegations against United Wholesale Mortgage (UWM) were published in an exposé-style report and a class action lawsuit, Hunterbrook Media is once again putting the Michigan lender under the spotlight. On Thursday, the hedge-funded media company published...

Analysis and Data

Homebuying Excitement Is Up Among Veterans

Survey results indicate optimism about housing market among U.S. veterans and service members

Our nation’s heroes are increasingly optimistic about buying homes, new research indicates. The amount of veterans and service members who plan to purchase a home in the next six months was up by 15 percentage points year-over-year, according to the Veterans Homebuying Re...