Multifamily Loan Originations Continue to Increase

Multifamily loan originations continue increasing despite other signs of the market slowing. 

An interesting article in National Mortgage News notes that multifamily loans managed a small 2% increase in the first half of 2018 matching last years performance.

Hotel originations are up 31% YTD and multifamily loans are up 17%, which experts expect to continue into the first half of 2019.

This is occurring despite declines in healthcare, office and retail.

Originations have increased 2 of the last 3 years. 2016 remained unchanged, 2015 saw a 29% increase and 2017 saw an increase of 20%.

I do not think we will see robust growth this year due to where we are in the market cycle, combined with rising interest rates and the threat of a full blown trade war. I do believe we will see value add opportunities continue to prove safe and robust investments, while stabilized commercial properties might prove prohibitive to smaller investors who want to get into the market to grow their equity in 'tier 1' markets due to the large down payments required.

Link to article here

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