Fannie Mae and Freddie Mac
both expect that 2019 will be
another robust year, but there
are some uncertainties around
the GSEs that bear watching.
Finance Focus
WHAT CAN SLOW
MULTIFAMILY
MONEY’S FLOW?
BY ERIKA MORPHY
The multifamily market’s full—some would say overly full—pipeline has been a worry among many in the industry for the past few years. 2019 will be no different. Fannie Mae expects to see 453,000 more apartment units
come on line this year. That’s on the heels of 381,000 units
delivered in 2018, and 394,000 added to the inventory in 2017.
But if there’s one silver lining about the asset class’ robust supply,
it’s that it’s sure to keep the capital markets busy.
Fannie Mae expects to see nearly $300 billion in multifamily mortgage originations this year, which is in keeping with other estimates, including those from the Mortgage Bankers
Association. Kim Betancourt, Fannie Mae’s director of economics and multifamily market research, says there are a number of factors for this healthy liquidity.
“It is not only that interest rates are still at historic lows and
that there are a lot of property loans with three- to five-year terms
remaining,” she explains, “But also, all this new supply coming on
line will need permanent financing. That should keep things moving
in the capital markets.”
