Freddie Mac Multifamily Surges to $66 Billion in 2024 Volume

Freddie Mac Multifamily Sees Significant Growth in 2024

Freddie Mac Multifamily has achieved notable success in 2024, with its production volume totaling $66 billion. This represents a striking 34% increase over the previous year. The company strategically navigated the market shifts, positioning itself effectively for the robust demand in the multifamily sector during the latter part of the year. With $65 billion dedicated to multifamily financing and $1 billion allocated to Low-Income Housing Tax Credit (LIHTC) equity investments, Freddie Mac has solidified its leadership in the agency market.

Commitment to Affordable Housing

In line with its mission, Freddie Mac has made remarkable strides in affordable housing, resulting in the support of 507,191 affordable rental units throughout the country. Kevin Palmer, head of multifamily for Freddie Mac, emphasizes, "Every day, we go to work to provide liquidity, stability, and affordability to the multifamily market." He noted that in a challenging year, Freddie Mac not only met but exceeded its mission goals, impacting countless lives positively.

Meeting Federal Housing Goals

Data from Freddie Mac reveals that 2024's production volume exceeded the standards set by the Federal Housing Finance Agency (FHFA). Impressively, 65% of the multifamily production qualified as affordable housing, surpassing the FHFA's 50% goal. This achievement reflects Freddie Mac's focus on serving low-income residents, with over 65% of goal-eligible units affordable to families earning less than 80% of the area median income (AMI).

Affordable Units and Community Impact

In addition, more than 15% of the financed units were affordable to very low-income families, with incomes not exceeding 50% of AMI. Overall, a remarkable 93% of all units financed in 2024 were affordable at or below 120% of AMI. This substantial contribution to housing affordability illustrates Freddie Mac's commitment to enhancing living conditions for families across the nation.

Record-Breaking Financing in Targeted Affordable Housing

Freddie Mac Multifamily has set a new benchmark in its Targeted Affordable Housing financing, providing a record-breaking $17 billion specifically aimed at nearly 133,000 rent-restricted affordable units. The company also facilitated the creation of affordable units for over 23,000 families, rehabilitated units for more than 10,000, and preserved housing affordability for nearly 11,000 families through favorable loan terms. These initiatives are crucial in expanding accessible housing options nationwide.

Strengthening Forward Commitments

Moreover, Freddie Mac's forward commitments continue to show strength, driving the development of 23,153 new affordable and workforce housing units. These forward commitments provide crucial financing certainty, allowing for planned construction and significant renovations to proceed smoothly, which inherently increases the availability of affordable rental options.

Innovative Financial Solutions

In a noteworthy development, Freddie Mac launched seven new highly flexible, longer-term credit facilities in 2024, generating close to $2 billion in new funding. This represents a stunning 64% increase compared to the previous year. The introduction of these credit facilities underlines Freddie Mac's ongoing commitment to innovate within the multifamily financing sector.

Pioneering LIHTC Equity Investments

Freddie Mac's investments in LIHTC equity have also been extraordinary, achieving its Duty to Serve targets with $1 billion invested in equity in 2024 alone. Since 2018, the company has committed over $5 billion to LIHTC equity initiatives, leading to the creation or preservation of over 33,000 affordable housing units. These impactful investments show a dedication to a mission that prioritizes equitable housing solutions.

Looking Ahead at The Future

As Freddie Mac Multifamily reflects on its achievements in 2024, it acknowledges that these accomplishments extend beyond mere statistics. Each unit financed is a vital opportunity for a family to find a place to call home. The company is continuously pushing forward with innovative ideas, preparing for both present challenges and future opportunities. A highlight of the year included the celebration of the ten-year anniversary of its Small Balance Loans and Tax-Exempt Loans programs, which have significantly contributed to affordable housing in various states. Moving forward, Freddie Mac aims to maintain this momentum and further innovate in the multifamily financing domain.

Frequently Asked Questions

What was Freddie Mac's 2024 production volume?

Freddie Mac's production volume reached $66 billion in 2024, marking a 34% increase from the previous year.

How did Freddie Mac contribute to affordable housing?

In 2024, Freddie Mac supported 507,191 affordable rental units, exceeding its mission-driven targets set by the FHFA.

What percentage of the production volume was for affordable housing?

65% of Freddie Mac's production volume qualified as mission-driven affordable housing, surpassing the 50% goal.

What initiatives did Freddie Mac implement for low-income residents?

Over 65% of the financed units were affordable to residents earning less than 80% of the area median income in 2024.

What are Freddie Mac's future plans?

Freddie Mac aims to continue innovating and expanding its multifamily financing solutions while maintaining focus on affordable housing initiatives.

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