After three straight years of declines, the Department of Housing and Urban Development's lending for multifamily and healthcare projects has rebounded, according to an analysis by Trepp.
The HUD's fiscal lending fell sharply from $38.12 billion in 2021 to $28.32 billion in 2022 and $12.41 billion in 2023 before bottoming out at $10.47 billion in 2024. The turnaround began in 2025, when lending climbed to $15.76 billion across 9,580 properties. The year's gains were led by healthcare lending, which includes skilled nursing and assisted living facilities, rising 89% year-over-year to a record $5.96 billion. Multifamily lending also strengthened, growing 35% to $9.8 billion.
Despite the welcome uptick, Trepp noted that HUD's 2025 lending volumes remain below historical levels. The 2025 total trails every year between 2016 and 2022, and the average annual volume since 2012—about $20.35 billion—is still much higher, though skewed upward by the heavy lending activity in 2020 through 2022. In terms of units financed, 2025 ranks as the third-lowest year since at least 2012.
Among healthcare lenders, Greystone Funding Company led the field in FY 2025 with 74 loans totaling $1.38 billion for 6,065 units. KeyBank followed with 28 loans for $807.72 million and 2,062 units; Vium Capital Mortgage with 44 loans totaling $714.37 million for 4,574 units; Dwight Capital with $475.38 million for 2,698 units across 31 loans and NewPoint Real Estate Capital with 24 loans at $445.35 million for 2,150 units.
Strong fundamentals continue to drive the healthcare and senior housing sectors as the baby boomer generation enters its 80s. New supply remains scarce, constrained by regulations that limit the development of skilled-nursing properties. Meanwhile, senior housing net operating incomes are climbing by double digits, bolstered by higher occupancy, rising rents and controlled expenses. Even so, property inventory expanded by only about 1% in 2025.
That shortage could soon become more acute. CBRE estimates the U.S. will need 200,000 additional senior housing units by 2028 to meet demographic demand, yet only about 20,000 units were under construction as of early 2025. Given high development costs—requiring rents to rise by roughly 20% to 30% for new projects to pencil out—a rapid expansion in construction appears unlikely.
In the HUD's multifamily lending category for FY 2025, Dwight Capital once again topped the list with 32 loans totaling $844.70 million for 4,660 units. The New York City Housing Development Corp. followed closely with $841.35 million across 11 loans for 5,559 units, while Walker & Dunlop posted $736.87 million in 22 loans for 4,124 units. Rounding out the top five were Berkadia Commercial Mortgage with $725.49 million in 29 loans for 4,303 units and Lument Real Estate Capital with $675.15 million across 44 loans for 4,882 units.
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