These Are the Riskiest Multifamily Securitization Markets

Multifamily market conditions have been increasingly difficult for a couple of years. KBRA looked at multifamily supply and demand in 25 of the largest MSAs in the country because of rising vacancy rates and record unit construction and developed a risk score for multifamily securitizations.

The MSAs represent $189.1 billion or two-thirds of the $287.8 billion of multifamily assets in Freddie Mac K-Series, commercial real estate collateralized loan obligation and conduit transactions. Each MSA gets a single average score on a 0 to 100 range. The higher the score, the weaker the securitizations in the MSA compared to the other MSAs.