Commercial and multifamily mortgage borrowing and lending is on the precipice of surpassing the $1 trillion mark for the first time in 2022. According to a new forecast released by the Mortgage Bankers Association (MBA), there was a 13% increase from 2021’s estimated volume of $900 billion. The forecast was revealed at the organization’s 2022 Commercial/Multifamily Finance Convention and Expo.
Multifamily lending alone is expected to rise to $493 billion in this year. Not only is that a record-breaking figure, but a 5% increase from last year’s record total of $470 billion. MBA also anticipates borrowing and lending will continue to remain high in 2023, with slightly more than $1.0 trillion of total commercial real estate lending and $474 billion in multifamily lending.
“2021 was a remarkable year for commercial real estate markets and we expect 2022 to continue that momentum,” said Jamie Woodwell, MBA’s vice president for commercial real estate research. “Commercial real estate lending volumes are closely tied to the values of the underlying properties. In 2021 those values rose by more than 20%, and those increases will fuel further demand for mortgage debt in the coming years. Continued increases in property incomes, and stability in the ways investors value those incomes, should also support solid demand for mortgage capital, even in the face of modest increases in interest rates.”