Multifamily Mortgage Debt Outstanding Increased in Q1

The level of commercial/multifamily mortgage debt outstanding increased by $46.8 billion (1.0 percent) in the first quarter of 2025, according to the Mortgage Bankers Association’s recent Commercial/Multifamily Mortgage Debt Outstanding quarterly report.

Total commercial/multifamily mortgage debt outstanding rose to $4.81 trillion at the end of the first quarter. Multifamily mortgage debt alone increased $19.9 billion (0.9 percent) to $2.16 trillion from the fourth quarter of 2024.

Despite lower origination volumes, the overall level of commercial and multifamily mortgage debt rose in the first quarter of 2025. This increase reflects the extended duration of outstanding loans and the continued appetite for real estate investment across key investor groups.

Commercial banks continue to hold the largest share (38 percent) of commercial/multifamily mortgages at $1.8 trillion. Agency and GSE portfolios and MBS are the second-largest holders of commercial/multifamily mortgages (22 percent) at $1.07 trillion. Life insurance companies hold $752 billion (16 percent), and CMBS, CDO and another other ABS issues hold $642 billion (13 percent). Many life insurance companies, banks and the GSEs purchase and hold CMBS, CDO and other ABS issues. These loans appear in the report in the “CMBS, CDO and other ABS” category.

Multifamily mortgage debt outstanding

Looking solely at multifamily mortgages in the first quarter of 2025, agency and GSE portfolios and MBS hold the largest share of total multifamily debt outstanding at $1.07 billion (50 percent), followed by banks and thrifts with $639 billion (30 percent), life insurance companies with $242 billion (11 percent), state and local government with $94 billion (4 percent), and CMBS, CDO and other ABS issues holding $62 billion (3 percent).

In the first quarter, CMBS, CDO and other ABS issues saw the largest gains in dollar terms in their holdings of commercial/multifamily mortgage debt—an increase of $16.2 billion (2.6 percent). Bank and thrifts increased their holdings by $13.1 billion (0.7 percent), agency and GSE portfolios and MBS increased their holdings by $7.5 billion (0.7 percent), and life insurance companies increased their holdings by $6.1 billion (0.8 percent).

In percentage terms, REITs saw the largest increase—4.0 percent—in their holdings of commercial/multifamily mortgages. Conversely, private pension funds saw their holdings decrease 10.6 percent.

Changes in multifamily mortgage debt outstanding

The $19.9 billion increase in multifamily mortgage debt outstanding from the fourth quarter of 2024 represents a quarterly gain of 0.9 percent. In dollar terms, bank and thrifts saw the largest gain—$10.0 billion (1.6 percent)—in their holdings of multifamily mortgage debt. Agency and GSE portfolios and MBS increased their holdings by $7.5 billion (0.7 percent), while life insurance companies increased by $1.9 billion (0.8 percent).

REITS saw the largest percentage increase in their holdings of multifamily mortgage debt, up 10.9 percent. Private pension funds saw the largest decline in their holdings of multifamily mortgage debt at 12.7 percent.

—Posted on July 24, 2025