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Freddie Mac’s Multifamily Volume Surges in 2024: $66 Billion in Production
Freddie Mac reported a remarkable 34% increase in its 2024 multifamily production volume compared to 2023. The government-sponsored enterprise (GSE) achieved a total production of $66 billion, which includes $65 billion in multifamily financing and $1 billion in low-income housing tax credit (LIHTC) equity investments.
While the total fell just shy of the Federal Housing Finance Agency's (FHFA) $70 billion cap for 2024, the improvement over 2023 is notable. Last year’s production totaled just over $49 billion, comprising $48.3 billion in multifamily financing and more than $883 million in LIHTC equity investments.
Freddie Mac credited the surge to strategic adjustments in anticipation of favorable market conditions in the latter half of 2024. The organization also successfully met its mission-driven affordable housing targets, supporting 507,191 affordable rental units across the United States.
Freddie Mac’s Commitment to Affordable Housing
“Every day, we go to work to provide liquidity, stability, and affordability to the multifamily market. In 2024, we not only met but exceeded our mission during a challenging year that made a tangible impact on countless lives,” said Kevin Palmer, head of multifamily at Freddie Mac. “By staying ahead of market shifts, we were well-positioned for effective execution in the latter part of the year. But our most important achievement was working with our Optigo lenders, servicers, borrowers, and investors to make quality, affordable rental housing available to more than half a million families nationwide.”
Key Highlights of 2024 Multifamily Activity
- Mission-Driven Housing: 65% of production volume qualified as mission-driven affordable housing, surpassing the FHFA’s 50% goal.
- Affordability Metrics: Over 65% of goal-eligible units financed were affordable to households earning less than 80% of area median income (AMI), with over 15% affordable to those earning less than 50% of AMI. In total, 93% of financed units were affordable at or below 120% of AMI.
- Record-Setting Targeted Affordable Housing: $17 billion in financing supported nearly 133,000 rent-restricted units.
- Household Impact:
- Supported the creation of affordable units for over 23,000 households.
- Facilitated the rehabilitation of units for over 10,000 households.
- Preserved affordability for nearly 11,000 households through favorable loan terms.
- Forward Commitments: Enabled the creation of 23,153 units of affordable and workforce housing.
- Credit Facilities: Established seven flexible, longer-term credit facilities, generating nearly $2 billion in new funding, a 64% increase from 2023.
- LIHTC Equity Investments: Achieved Duty to Serve targets with $1 billion in LIHTC equity investments. Since 2018, Freddie Mac has committed over $5 billion in LIHTC equity, creating or preserving over 33,000 units.
Driving Innovation in Multifamily Financing
“Freddie Mac Multifamily’s 2024 achievements go beyond the numbers,” added Palmer. “Each unit we fund is a place for a family to call home. That’s why we continue to drive forward new ideas to meet our mission while celebrating past success. In 2024, we marked the 10-year anniversary of our Small Balance Loan and Tax-Exempt Loan programs, which have supported hundreds of thousands of affordable units across the nation. We are embracing the challenge of continuing to innovate in the next decade and beyond.”
Freddie Mac’s strong 2024 performance underscores its commitment to addressing the nation’s need for affordable rental housing, proving that strategic foresight and collaboration with partners can drive impactful results even in challenging markets.
