2024 Freddie Mac Multifamily Volume Reaches $66 Billion, Up 34% Year Over Year

Rhea-AI Summary

Freddie Mac Multifamily reported a strong performance in 2024 with total production volume reaching $66 billion, marking a 34% increase from 2023. The volume comprised $65 billion in multifamily financing and $1 billion in Low-Income Housing Tax Credit (LIHTC) equity investments.

The company supported 507,191 affordable rental units across the United States, with 65% of production volume qualifying as mission-driven affordable housing, exceeding the FHFA's 50% goal. Notable achievements include:

• 93% of financed units were affordable at or below 120% of AMI
• Record $17 billion in Targeted Affordable Housing volume, supporting nearly 133,000 rent-restricted units
• Creation of affordable units for over 23,000 families through forward commitments
• Seven new credit facilities generating almost $2 billion in new funding

Positive

• 34% year-over-year increase in production volume to $66 billion
• Exceeded FHFA's affordable housing goals with 65% mission-driven volume
• Record $17 billion in Targeted Affordable Housing volume
• 64% increase in credit facilities funding to $2 billion
• Supported over 507,000 affordable rental units

Negative

• None.

Company Supported Over 507,000 Affordable Rental Units in 2024, on Track to Exceed Affordable Housing Goals

MCLEAN, Va., Jan. 15, 2025 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) Multifamily today announced its 2024 production volume totaled $66 billion, a 34% increase over 2023. Creative, strategic shifts ahead of improved market conditions in the second half of the year resulted in $65 billion in multifamily financing and $1 billion in Low-Income Housing Tax Credit (LIHTC) equity investments in 2024. The company led the agency market in volume and met all its mission-driven affordable housing targets, supporting 507,191 affordable rental units across the United States while maintaining strong safety and soundness standards.

“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 for 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.”

Freddie Mac data released today indicates that the company will achieve its 2024 Multifamily affordable housing goals set by the Federal Housing Finance Agency (FHFA). A total of 65% of 2024 production volume qualified as “mission-driven affordable housing,” exceeding the 50% goal set by FHFA.

More than 65% of goal-eligible units financed were affordable to low-income residents earning less than 80% of area median income (AMI) and more than 15% were affordable to very low-income residents with incomes no greater than 50% of AMI, surpassing both goals. In total, 93% of all units financed in 2024 were affordable at or below 120% of AMI.

Freddie Mac Multifamily’s Targeted Affordable Housing volume hit a record high in 2024, providing $17 billion in financing to support nearly 133,000 rent-restricted affordable units. Freddie Mac Multifamily supported the creation of affordable units for more than 23,000 families, the rehabilitation of units for more than 10,000 and preserved affordability without subsidy through Freddie Mac loan terms for nearly 11,000 families.

Forward commitments showed continued strength in 2024, driving the creation of 23,153 units of new affordable and workforce housing. Forwards provide certainty of financing by locking in loan terms in advance, allowing new construction or major renovations to advance and increasing the supply of affordable rental housing.

Also in 2024, Freddie Mac opened seven new highly flexible, longer term credit facilities, generating almost $2 billion in new funding, a 64% increase over 2023.

With $1 billion in LIHTC equity investments in 2024, Freddie Mac achieved its LIHTC equity Duty to Serve targets. Since 2018, Freddie Mac Multifamily has committed over $5 billion in LIHTC equity, ensuring over 33,000 units of affordable housing were created or preserved.

“Freddie Mac Multifamily’s 2024 achievements go beyond the numbers,” Palmer added. “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 ten-year anniversary of our Small Balance Loans and Tax-Exempt Loans programs, which have supported hundreds of thousands of affordable units in states nationwide. We are embracing the challenge of continuing to innovate in the next decade and beyond.”

Freddie Mac Multifamily is a national multifamily housing finance leader. Historically, more than 90% of the eligible rental units we fund are affordable to families with low-to-moderate incomes earning up to 120% of area median income. Freddie Mac securitizes more than 90% of the multifamily loans it purchases, transferring interest-rate risk, liquidity risk, and the majority of expected credit risk away from U.S. taxpayers to private investors.

Freddie Mac’s mission is to make home possible for families across the nation. We promote liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, we have helped tens of millions of families buy, rent or keep their home. Learn More:
Website | Consumers | Twitter | LinkedIn | Facebook | Instagram | YouTube

MEDIA CONTACT: Melissa Silverman
703-388-7037
Melissa_Silverman@FreddieMac.com

FAQ

What was Freddie Mac's (FMCC) multifamily production volume in 2024?

Freddie Mac's multifamily production volume reached $66 billion in 2024, consisting of $65 billion in multifamily financing and $1 billion in LIHTC equity investments.

How many affordable rental units did FMCC support in 2024?

Freddie Mac supported 507,191 affordable rental units across the United States in 2024.

What percentage of FMCC's 2024 production volume was mission-driven affordable housing?

65% of Freddie Mac's 2024 production volume qualified as mission-driven affordable housing, exceeding the FHFA's 50% goal.

How much did FMCC invest in Targeted Affordable Housing in 2024?

Freddie Mac's Targeted Affordable Housing volume reached a record high of $17 billion in 2024, supporting nearly 133,000 rent-restricted affordable units.

What was FMCC's LIHTC equity investment in 2024?

Freddie Mac invested $1 billion in LIHTC equity in 2024, meeting its Duty to Serve targets.