{"id":4575,"date":"2025-03-27T19:51:03","date_gmt":"2025-03-27T19:51:03","guid":{"rendered":"https:\/\/cred-iq.com\/blog\/?p=4575"},"modified":"2025-03-28T13:01:07","modified_gmt":"2025-03-28T13:01:07","slug":"apartment-loan-delinquencies-surge-39-in-q4-2024-a-deep-dive-into-the-numbers","status":"publish","type":"post","link":"https:\/\/cred-iq.com\/blog\/2025\/03\/27\/apartment-loan-delinquencies-surge-39-in-q4-2024-a-deep-dive-into-the-numbers\/","title":{"rendered":"Apartment Loan Delinquencies Surge 39% in Q4 2024: A Deep Dive into the Numbers"},"content":{"rendered":"\n

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Hey, real estate enthusiasts! The CRED iQ Research team here, back with a fresh look at the multifamily loan landscape. This week, we\u2019ve zoomed in on the latest trends shaking up the apartment sector, building on the community bank data from our 2025 Almanac. Buckle up\u2014because the numbers are telling a story of rising delinquencies, slowing growth, and some eye-popping loan loss figures for 2024.<\/p>\n\n\n

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Delinquency Dollars Pile Up: $2.38 Billion in Q4 Alone<\/strong><\/p>\n\n\n\n

Let\u2019s start with the headline: multifamily loan delinquencies at community banks jumped 39% from Q3 to Q4 2024, ballooning by $2.38 billion in newly delinquent loans. That brings the total delinquent balance to a hefty $8.49 billion by year-end. For context, this figure was just $6.11 billion in Q3 2024 and a modest $1.98 billion back in Q2 2023. That\u2019s right\u2014delinquencies have been climbing steadily since mid-2023, but 2024 turned up the heat with bigger quarter-over-quarter spikes.<\/p>\n\n\n\n

Breaking it down, the year started slow with a $234.8 million uptick in Q1 (compared to Q4 2023). Then things accelerated: Q2 added $1.90 billion, Q3 tacked on $545.6 million, and Q4 slammed the door with that massive $2.4 billion increase. By the time the calendar flipped to 2025, the delinquency rate for multifamily loans hit 1.35%\u2014a sharp rise from 0.56% a year earlier. Q1 2025 data isn\u2019t out yet, but the trend lines suggest this percentage isn\u2019t slowing down anytime soon.<\/p>\n\n\n

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Growth Slows, Balances Still Climb<\/strong><\/p>\n\n\n\n

Over the past decade, multifamily loan balances held by community banks have swelled at a solid 7.9% average annual growth rate\u2014from $297.4 billion in 2014 to $628.9 billion in 2024. That\u2019s a lot of apartments! But here\u2019s the twist: growth has hit the brakes since 2023, dropping to just 2.2% that year and ticking up slightly to 2.8% in 2024. So, while the total loan pie keeps expanding, it\u2019s growing at a much slower pace than before\u2014meanwhile, those delinquency cracks are widening.<\/p>\n\n\n

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Losses Sting: Realized Hits Double in 2024<\/strong><\/p>\n\n\n\n

If rising delinquencies weren\u2019t enough, realized loan losses are adding salt to the wound. In 2023, community banks took a $305.8 million hit\u2014a jaw-dropping 411% leap over 2022. Fast forward to 2024, and losses more than doubled to $691.8 million, up 126% from the year prior. That\u2019s not just a blip\u2014it\u2019s a signal that the multifamily sector is feeling some serious pressure.<\/p>\n\n\n\n

Why It Matters<\/strong><\/p>\n\n\n\n

So, what\u2019s driving this? We dug into FDIC-insured multifamily loan data to understand how community banks\u2014key players in this ecosystem\u2014are exposed. The uptick in delinquencies and losses points to broader challenges: rising interest rates, softening rents, or maybe even over-leveraged borrowers. Whatever the culprits, the numbers don\u2019t lie\u2014this is a trend worth watching.<\/p>\n\n\n\n

Stay tuned as we keep our finger on the pulse of the multifamily market. Got questions or want us to dig deeper? Drop us a line\u2014we\u2019re here to crunch the data and cut through the noise!<\/p>\n\n\n

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About CRED iQ<\/strong><\/p>\n\n\n\n

CRED iQ <\/a>is a market data provider that offers a robust suite of data and software solutions tailored for commercial real estate and finance professionals.<\/p>\n\n\n\n

With over $2.3 trillion of CRE loans, CRED iQ delivers instant access to a comprehensive range of financial data and analytics for millions of properties in every market. CRED iQ\u2019s data and analytical capabilities are instrumental in helping investors, lenders and brokers make informed and strategic decisions critical to their business.<\/p>\n","protected":false},"excerpt":{"rendered":"

Hey, real estate enthusiasts! The CRED iQ Research team here, back with a fresh look at the multifamily loan landscape. This week, we\u2019ve zoomed in on the latest trends shaking up the apartment sector, building on the community bank data from our 2025 Almanac. Buckle up\u2014because the numbers are telling a story of rising delinquencies, […]<\/p>\n","protected":false},"author":3,"featured_media":4577,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[9],"tags":[5,6,8,18],"class_list":{"0":"post-4575","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-research","8":"tag-commercial-real-estate-data","9":"tag-delinquency","10":"tag-loan-data","11":"tag-multifamily"},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/cred-iq.com\/blog\/wp-json\/wp\/v2\/posts\/4575","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cred-iq.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cred-iq.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cred-iq.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/cred-iq.com\/blog\/wp-json\/wp\/v2\/comments?post=4575"}],"version-history":[{"count":4,"href":"https:\/\/cred-iq.com\/blog\/wp-json\/wp\/v2\/posts\/4575\/revisions"}],"predecessor-version":[{"id":4586,"href":"https:\/\/cred-iq.com\/blog\/wp-json\/wp\/v2\/posts\/4575\/revisions\/4586"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cred-iq.com\/blog\/wp-json\/wp\/v2\/media\/4577"}],"wp:attachment":[{"href":"https:\/\/cred-iq.com\/blog\/wp-json\/wp\/v2\/media?parent=4575"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cred-iq.com\/blog\/wp-json\/wp\/v2\/categories?post=4575"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cred-iq.com\/blog\/wp-json\/wp\/v2\/tags?post=4575"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}