MBA Predicts Annual Commercial, Multifamily Lending Volume to Increase By 31 Percent in 2021

WASHINGTON, D.C. — Commercial and multifamily mortgage bankers are expected to close approximately $578 billion of loans backed by income-producing properties in 2021, according to a report released by the Mortgage Bankers Association (MBA) on Tuesday. The report predicts a 31 percent increase from last year’s loan volume of $442 billion.

Jamie Woodwell, MBA’s vice president for commercial real estate research, says that commercial and multifamily real estate markets are moving past the pain that the COVID-19 pandemic caused in 2020.

“There remain significant differences by property type, but incomes have rebounded strongly and investor interest in real estate and real estate finance is robust,” says Woodwell. “The result is strong property appreciation and increased transaction activity, both of which are fueling financings.”

MBA predicts that multifamily lending alone will rise to $409 billion this year, which would be a new record and a 13 percent increase from 2020’s total of $360 billion.

Looking ahead, MBA anticipates additional increases in lending volume in 2022, with activity rising to $597 billion in commercial/multifamily loan originations by mortgage bankers, and $421 billion in total multifamily lending.

Based in Washington, D.C., the MBA is a national association representing the real estate finance industry, which employs more than 330,000 people nationally. The association’s membership of more than 1,900 companies includes all elements of real estate finance: independent mortgage banks, mortgage brokers, commercial banks, thrifts, REITs, Wall Street conduits, life insurance companies, credit unions and others in the mortgage lending field.

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