CoStar Group's Mark Heschmeyer looks at the latest figures from the Federal Reserve, which show that debt for the multifamily market continues to grow, having risen at a 10.15% pace over the past year.

This growth follows a trajectory of year-over-year growth as the volume of multifamily debt has topped each previous year for seven of the past eight years. In fact, multifamily debt outstanding is now at $1.137 trillion, nearly a third (31%) of the total commercial real estate market. This marks a new peak for the industry, surpassing that in 2008, when multifamily made up a quarter of all outstanding commercial real estate debt.

"The amount of commercial and multifamily mortgage debt outstanding grew to a new record during the second quarter, despite a record drop in the balance of CMBS loans outstanding," Jamie Woodwell, MBA's vice president of commercial real estate research, reported in MBA’s analysis of outstanding debt. "The CMBS market is seeing far more loans paying off and paying down than new loans being originated.”

Private CMBS issuers continue to see their share of outstanding CRE debt shrink. Their total volume of multifamily debt shrunk 16.5% in the past year and now is 49% below their peak volume in 2008 ...

U.S. REITs have also been shrinking their overall outstanding debt, with one distinction: nonresidential debt is down 8.8% from a year ago, but multifamily debt is up 4.3% from a year ago.

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