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.

The six weakest MSAs were Detroit, MI (86); Chicago, IL (79); Denver, CO (77); Washington, D.C. (74); Atlanta, GA (74); and Philadelphia, PA. The six strongest were Las Vegas, NV (30); San Diego, CA (48); Houston, TX (48); San Francisco, CA (52); Portland, OR (52); and Riverside, CA (52).