Lending to the multifamily sector has slumped 55% in the year ending in the third quarter of 2023, according to Newmark's 3Q 2023 U.S. multifamily capital markets report. And the months ahead seem no brighter either for loan originations or loans scheduled to mature by 2025.

Loan originations plummeted 33% even between 2Q 2023 and 3Q 2023, hitting their lowest level since 2014. Bank and CMBS or CRE collateralized loan obligations (CRE CLO) contracted sharply. Debt fund lending fell more modestly while the insurance share remained stable.

However, lending by government-sponsored enterprises rose from multiyear lows, "playing their role in improving stability in the finance markets." That could change later in the decade when the report predicted there will be more at-risk GSE loans, though it is "premature to focus overmuch on these."