Lending activity from the Department of Housing and Urban Development surged this year, with the agency’s multifamily and healthcare programs nearly doubling volumes compared to the prior year, according to Trepp. Through the first nine months of fiscal 2025, HUD recorded $10.42 billion in lending, up sharply from $6.97 billion over the same period in 2024. The third quarter alone accounted for $3.59 billion.
Trepp cautioned that most of its data reflected only the first nine months of 2025, while prior years were presented as full-year totals, making direct comparisons somewhat uneven. Even so, the year-to-date acceleration was striking.
For multifamily properties, HUD lending rose to $6.4 billion in the first nine months of 2025, a 26% increase from $5.1 billion a year earlier. The most dramatic growth came on the healthcare side, where lending more than doubled to $4.1 billion, compared to $1.9 billion in the same period of 2024. Combined, the two categories saw lending rise nearly 50% year-over-year.
The surge in healthcare lending was closely tied to improving fundamentals in the seniors housing sector. Occupancy in seniors housing rose 80 basis points year-over-year to 88.1%, according to the National Investment Center for Seniors Housing and Care. Independent-living properties led the way, climbing 70 basis points to 87.7%—marking the third consecutive quarterly gain—while assisted-living units saw a 40-basis-point increase to 86.4%.
Underlying those increases is a growing demand-supply imbalance. The senior population continues to expand, but construction of new facilities has remained limited. By the fourth quarter of 2025, fewer than 22,000 units were under construction, and just 809 units were delivered in the second quarter—the lowest number since 2005. Rents have responded accordingly, with independent-living units posting a 4.25% annual increase, reaching $4,402 per month.
The lending momentum was also shaped by a small circle of originators. From October 2024 through June 2025, Greystone Funding led the market with 67 loans totaling $1.41 billion, followed by Dwight Capital, Berkadia Commercial Mortgage, KeyBank, Walker & Dunlop, and Lument Real Estate Capital. Other top lenders included Mason Joseph, New York City Housing Development Corp., NewPoint Real Estate Capital and Merchants Capital Corp., each originating hundreds of millions in HUD-backed loans during the period.
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