Data and Trends

What Housing Finance Reform Means for Multifamily


The U.S. housing market has experienced a fundamental transformation since the housing bubble burst and recession of 2007. Before the banking crisis, homeownership was on the rise and peaked at 69% that same year. Since then, the trend has reversed and more than 10.3 million renter households have been added. 

Now that more people are renting, government-sponsored enterprises – like Fannie Mae and Freddie Mac – have become heavily involved in financing the multifamily sector. As such, the topic of housing finance reform has been buzzing around Washington DC – and it’s reported that legislation will be taking on the issue within the next year. 

Many plans have already been circulating Congress, including:

  • Privatizing the mortgage market and removing the implicit government guarantee.
  • Merge both financial entities to form a government corporation.
  • Transition to a multiple guarantor model.

With the final decision slated for 2018, it is hard to say what’s in store for the housing market. Until a verdict has been reached, it’s business as usual.

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