Freddie Mac’s 2025 Activity Reinforces Liquidity in Multifamily

Freddie Mac closed 2025 with a notable increase in multifamily lending activity, reinforcing its role as a stabilizing source of capital in the U.S. rental housing market. Total multifamily production reached $77 billion, a 17% increase year-over-year, as lending volumes recovered and financing conditions improved across the sector.

A defining feature of the year was Freddie Mac’s continued emphasis on affordable housing. Sixty-six percent of total production qualified as mission-driven affordable housing, well above the Federal Housing Finance Agency’s 50% target. This outcome highlights both the depth of affordability constraints nationally and the GSE’s expanding role in supporting income-restricted and regulated rental housing.

In aggregate, Freddie Mac supported housing for more than 577,000 renter households in 2025. Nearly 70% of eligible units financed were to households earning below 80% of area median income, with an additional 17% serving households below 50% of AMI. Overall, 93% of units financed were affordable to residents at or below 120% of AMI, underscoring the breadth of Freddie Mac’s affordability reach.

One of the most significant developments during the year was Freddie Mac’s record $1.2 billion investment in Low-Income Housing Tax Credit equity, following an FHFA policy change that lifted the GSE’s equity investment cap. This policy shift materially expanded Freddie Mac’s ability to participate in affordable housing equity and improved execution certainty for both new construction and preservation transactions at a time when equity markets remain selective.

Beyond equity investments, Freddie Mac expanded activity across several structured and long-term financing programs designed to support affordability and market liquidity. Forward commitment activity increased meaningfully, long-term financing facilities reached new highs, and structured product executions contributed additional depth to the capital stack available to multifamily owners.

From a Hammer & Hampel perspective, these trends are constructive for the affordable housing segment. While the broader multifamily market continues to work through elevated delinquencies and operating pressure, Freddie Mac’s expanded lending capacity and equity participation provide an important counterbalance, supporting transaction viability and long-term capital availability.

As the market moves into 2026, Freddie Mac’s 2025 results reinforce the importance of mission-driven capital as a stabilizing force within multifamily. Continued GSE engagement should remain a key factor shaping liquidity, execution, and investment strategy in the affordable housing sector.

(Sources: CRE Daily)