MBA: 2021 Commercial/Multifamily Lending to Increase 31% to $578 Billion

Commercial and multifamily mortgage bankers are expected to close $578 billion in loans backed by income-producing properties in 2021, a 31 percent increase from 2020’s volume of $442 billion, according to a new forecast from the Mortgage Bankers Association.

The forecast said total multifamily lending alone, which includes some loans made by small and midsize banks not captured in the overall total, is forecast to rise to a record $409 billion in 2021, a 13 percent increase from last year’s $360 billion. MBA anticipates additional increases in lending volumes in 2022, with activity rising to $597 billion in commercial/multifamily mortgage bankers originations and $421 billion in total multifamily lending.  

“Commercial and multifamily real estate markets are moving past the pain that the COVID-19 pandemic caused in 2020,” said Jamie Woodwell, MBA Vice President for Commercial Real Estate Research. “There remain significant differences by property type, but incomes have rebounded strongly and investor interest in real estate and real estate finance is robust. The result is strong property appreciation and increased transaction activity, both of which is fueling financings.”  

Woodwell noted the MBA forecast anticipates the economic rebound to continue this year and next, with real estate benefiting both from a rebound from last year’s lows, and from broader economic growth. “There remains uncertainty about the impact of new strains of the virus in the fall, but even in a negative scenario – which we don’t expect — it is hard to imagine the real estate market having to experience anything like the widespread closures of last year,” he said.

For additional commentary on the pandemic’s impact on the sector, visit MBA’s Commercial/Multifamily Market Intelligence Blog.

MBA commercial/multifamily members can download a copy of the Association’s latest Commercial/Multifamily Real Estate Finance Forecast at www.mba.org/crefresearch.