WASHINGTON — Outstanding commercial and multifamily mortgage debt in the United States rose to nearly $5 trillion at the end of 2025, as continued strength in multifamily lending and activity from government-sponsored enterprises fueled market growth, according to the Mortgage Bankers Association.
Total commercial and multifamily mortgage debt increased 1.5%, or $75.2 billion, during the fourth quarter to $4.99 trillion, the association reported Thursday. On a year-over-year basis, debt climbed 4.5%, a gain of $214 billion from the end of 2024.
Multifamily lending was a primary driver, with outstanding multifamily mortgage debt rising 6.6% over the year to $2.29 trillion, according to the Mortgage Bankers Association.
The Growth Driver
“Growth was driven largely by multifamily lending and sustained activity from agency and GSE portfolios, which led to both quarterly and annual gains,” said Reggie Booker, the group’s associate vice president of commercial research, in a statement.
Despite broader economic pressures, the data point to continued expansion in real estate finance markets, though lenders are becoming more selective.
Booker said that while banks remain the largest holders of commercial and multifamily mortgage debt, “the steady pace of growth across investor groups reflects a market that is still active, but increasingly selective as lenders navigate a higher rate environment and evolving property fundamentals.”
At the same time, loan performance showed mixed results across investor groups, according to a separate Mortgage Bankers Association report on commercial mortgage delinquencies. Some portfolios, including those tied to Fannie Mae, saw rising delinquencies, while others, such as life insurance company portfolios, recorded declines.
‘Resilient’ Performance
“Overall loan performance remains resilient,” Booker said, adding that certain capital sources continue to face ongoing challenges.
Commercial banks and thrifts held the largest share of outstanding debt at 37%, or $1.9 trillion, according to the Mortgage Bankers Association. Agency and GSE portfolios, along with mortgage-backed securities, accounted for $1.1 trillion, or roughly 23% of the total.
Life insurance companies held $774 billion, representing 16% of the market, while commercial mortgage-backed securities, collateralized debt obligations and other asset-backed securities totaled $647 billion, or 13%.
During the fourth quarter, commercial banks increased their holdings by $24.8 billion, or 1.3%. Life insurance companies added $11.5 billion, a 1.5% increase, while CMBS, CDO and other asset-backed securities grew by $3.6 billion, or 0.6%, according to the Mortgage Bankers Association.
