Freddie Mac Multifamily's $56 Billion in 2024 Securities: A Glimpse into the Thriving Multifamily Market

In the dynamic world of real estate investing, one sector has consistently shown resilience and growth: multifamily housing. Freddie Mac Multifamily, a leading player in the market, recently issued $56 billion in securities in 2024, reflecting the robust demand and potential in this asset class. As we delve into the factors driving this growth, we can gain valuable insights into the multifamily market's trajectory and the opportunities it presents for investors.



The multifamily market's strength can be attributed to several key factors:

1. Economic Strength and Demographic Tailwinds: The multifamily market benefits from a strong economy and favorable demographic trends. As the economy grows, so does the demand for housing, particularly in urban areas where multifamily properties are prevalent. Additionally, demographic shifts, such as an increasing number of young adults and empty-nesters, contribute to the growing demand for multifamily housing.
2. Lack of Alternative Housing Options: With the supply of single-family homes limited and affordability a challenge, multifamily properties remain an attractive option for many renters. This scarcity of alternatives makes multifamily properties a favored investment option, driving demand and originations.
3. Stabilizing Interest Rates: Despite interest rates remaining high and volatile, they are expected to stabilize, encouraging investment in multifamily properties. As Sara Hoffmann, senior director of Multifamily Research at Freddie Mac, stated, "We expect the multifamily market to continue to see subdued but positive growth in 2025, and for origination volume to increase as interest rates continue to stabilize — albeit at a higher level."
4. Modest Rent Growth and Vacancy Rates: Although demand is expected to remain well above average in 2025, vacancy rates are projected to increase to 6.2%. Despite this, rent growth is forecasted to be 2.2%, resulting in a gross rental income growth of 2% for 2025. This modest growth, coupled with the other factors, contributes to the overall attractiveness of the multifamily market.

As we look ahead to 2025, Freddie Mac forecasts multifamily originations to rise, with a projected volume of $370 billion to $380 billion. This upward trend aligns with the 2024 performance, indicating that the multifamily market is expected to remain strong and continue to grow despite higher interest rates.



In conclusion, the multifamily market's resilience and growth, as evidenced by Freddie Mac Multifamily's $56 billion in 2024 securities, present an attractive investment opportunity for those seeking to capitalize on the sector's potential. By understanding the factors driving this growth and the market's trajectory, investors can make informed decisions and benefit from the thriving multifamily market.