According to a report from Trepp on Monday, lending through the U.S. Department of Housing and Urban Development’s (HUD) multifamily and healthcare-property funding programs totaled $10.43 billion in the agency’s latest fiscal year, which ended in September. This represents a decrease of nearly 16% compared to the previous year and marks the lowest level seen in at least 12 years.
Trepp attributes this decline to high interest rates, as HUD lending had reached a record high of $38.12 billion just one year prior due to low rates and robust property sales volumes.
The majority of this decline can be attributed specifically to lending against multifamily properties, while lending against healthcare properties actually increased by 17% from the previous fiscal year with a total volume of $3.15 billion.
Trepp notes that there has been renewed interest in investing within the healthcare sector since it rebounded significantly following pandemic-related lockdowns earlier this year.
During this latest fiscal period, Greystone Funding emerged as the most active HUD lender with nearly 11% share of total volume for that time frame according to Trepp’s data analysis.
