Multifamily apartment mortgages issued in 2021 are experiencing a dramatic rise in delinquency rates. One specific pool of these vintage loans reportedly exceeds a 53% delinquency rate.
Borrowers face higher debt costs on floating-rate loans taken during historic interest rate lows. Subsequent rate hikes have made these debts difficult to service.
Property owners face immense pressure from a decline in building values since their 2022 peak. Over $1.8 trillion in apartment debt matures over the next decade.
Nearly $300 billion of this total comes due in 2026 alone. These conditions create opportunities for distressed-asset investors as landlords are forced to sell or return properties to lenders.