Higher interest rates, lower property values and a surge in supply will test the multifamily market in the next few years as loans come due on a large volume of properties. Loans on more than 58,000 properties totaling $525 billion will mature over the next five years, nearly half of the total $1.1 trillion of loans currently backed by apartments. In the short term, through the end of 2025, loans on 6,800 properties totaling nearly $150 billion are set to mature.

The loan maturities are not spread evenly across the country. Metros with the largest volume of maturities and/or the most loans maturing as a percentage of stock include Atlanta, Dallas, Denver, Houston, Chicago and New York City. Loans originated by the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac have the largest volume of maturities, but most GSE debt comes due in five years or longer. On the other hand, nearly half of debt-fund loans mature through the end of 2025, as does nearly one-quarte