Although apartment sale prices have more than doubled since 2010, market forecasts predict that rent declines are on their way in many cities.

Although apartment sale prices have more than doubled since 2010, market forecasts predict that rent declines are on their way in many cities. Many publicly traded REITs have pulled away from multifamily, and aggregate U.S. multifamily loan volume fell 2% year over year for the 12 months ending on Sept. 30, 2016, according to Banking Exchange.

But many lenders, including major firms like JPMorgan and Wells Fargo, have increased their multifamily lending.

JPMorgan’s multifamily loan counts rose 1.2% in the 12-month period ending Sept. 30, 2016. The bank’s management emphasized that many of these loans were given to second-tier buildings in top markets. Chad Tredway, head of commercial term lending for JPMorgan Chase & Co.'s east region, said that the major difference between current conditions and those that led to the Great Recession were in multifamily underwriting on expected future rent, a practice that has not been repeated.

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