Freddie Mac’s Multifamily Housing Investment Surges by 17% in 2025
Summary:
Freddie Mac significantly increased its investment in multifamily housing by 17% in 2025, reaching a production volume of $77.6 billion. This growth underscores the government-sponsored entity’s commitment to expanding affordable rental housing across the U.S., supporting over 577,000 affordable units. Key initiatives included a record $1.2 billion investment in Low-Income Housing Tax Credit equity and $1.1 billion in workforce housing preservation loans. Freddie Mac’s efforts align with federal goals, with 66% of its production volume qualifying as mission-driven affordable housing.
What This Means for You:
- Increased access to affordable rental housing options in underserved communities.
- Opportunities for developers to secure funding for affordable housing projects through Freddie Mac’s expanded programs.
- Potential for reduced rental costs as supply increases, benefiting low- and very low-income households.
- Future outlook: Continued federal support and innovation in multifamily financing will likely drive further growth in affordable housing supply.
Original Post:
Freddie Mac increased its investment in multifamily housing by 17% last year. The government-sponsored entity announced Thursday its multifamily production volume hit $77.6 billion in 2025, up from $66 billion in 2024 and $49 billion in 2023. Freddie supported more than 577,000 affordable rental units across the country last year.
“Our focus in 2025 was on bringing liquidity to the multifamily market to increase the supply of affordable rental housing in communities across the country,” said Kevin Palmer, head of multifamily for Freddie Mac, in a press release.
After US Federal Housing doubled the Low-Income Housing Tax Credit equity cap in August, Freddie Mac Multifamily made a record investment of $1.2 billion in 2025. The total production volume also included $1.1 billion in workforce housing preservation loans and $2.4 billion in forward conversions, which are not subject to the U.S. Federal Housing multifamily loan cap, according to the release.
US Federal Housing increased the multifamily caps at Freddie and Fannie Mae for 2026 by more than 20% compared to last year, it announced in November. The $176 billion cap will be split evenly between the two entities at $88 billion.
“Freddie Mac Multifamily delivers essential liquidity to create affordable apartment supply around the country each and every year,” Palmer said in a prior statement. “In 2026, we will continue to provide that needed liquidity with our full suite of offerings and continued innovation.”
The GSE strengthened product offerings to better support the creation of new rental housing last year. For example, it expanded the forwards program to include conventional properties and enhanced Lease-Up Loans with an additional borrow-up at first mortgage pricing to increase certainty and reduce costs, the release said.
Freddie also financed the creation, preservation or rehabilitation of more than 59,000 units of affordable housing, according to the release.
The company’s Long-Term Financing Facilities hit a record in 2025 as well, producing $2 billion in new funding, a 42% jump from the previous year, the release said.
The data indicates that Freddie will achieve its 2025 multifamily affordable housing goals set by U.S. Federal Housing. A total of 66% of the production volume qualified as “mission-driven affordable housing,” exceeding the 50% goal. Almost 70% of goal-eligible units financed were affordable to low-income residents earning less than 80% of the median income in their area and about 17% were affordable to very low-income residents who earned less than 50% of the median, surpassing both goals, according to the release.
Extra Information:
For more insights into Freddie Mac’s multifamily initiatives, visit their official website. Explore the latest federal housing policies at the U.S. Department of Housing and Urban Development (HUD).
People Also Ask About:
- What is Freddie Mac’s role in affordable housing? Freddie Mac provides liquidity to the multifamily market, financing affordable rental units nationwide.
- How does the Low-Income Housing Tax Credit work? It offers tax incentives to developers who build or renovate affordable housing.
- What are workforce housing preservation loans? They fund the maintenance and improvement of housing for low- and moderate-income workers.
- How has federal policy impacted multifamily financing? Increased caps and expanded programs have boosted investment in affordable housing.
- What are Freddie Mac’s future goals? The entity aims to continue innovating its offerings to meet rising housing demands.
Expert Opinion:
Freddie Mac’s 2025 achievements highlight a critical shift toward scalable solutions for affordable housing. As federal support grows, its innovative financing models will play a pivotal role in addressing the housing crisis, particularly for low-income households.
Key Terms:
- Freddie Mac multifamily housing investment
- Affordable rental housing solutions
- Low-Income Housing Tax Credit equity
- Workforce housing preservation loans
- Federal multifamily financing caps
- Mission-driven affordable housing projects
- Long-Term Financing Facilities
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