Multifamily lenders increased financing for apartments containing five or more rental units by 31% in 2010, the Mortgage Bankers Association
said in a new report Wednesday.
The trade group says 2,548 multifamily lenders loaned $68.8 billion in mortgage financing for that particular market segment last year.
The multifamily lenders who played the largest role in writing the loans included Wells Fargo (WFC)
, CBRE Capital Markets Inc
., Berkadia Commercial Mortgage LLC
, PNC Real Estate (PNC)
and Prudential Mortgage Capital Co. (PRU)
"The multifamily lending market grew 31% in 2010, with credit extended by a broad range of lenders to a broad range of properties," said Jamie Woodwell, MBA's vice president of commercial real estate research.
Comparatively, lenders in 2008 — the year of the financial market crash — provided only $88 billion in new financing for multifamily properties, a 40% drop from 2007, according to the MBA.
Looking at just housing starts, the Commerce Department
reported Wednesday that housing starts shot up
15% in September, hitting 658,000 units, compared to August, and were up by more than 10% from a year ago.
Permits for apartments with five or more units rocketed up by 53.4% over August and by 57.6% over the year-ago period, according to the data. The Commerce Department data shows 227,000 apartments with five or more units were started in September, up from 144,000 in the year-ago period.
Write to Kerri Panchuk