Multifamily CMBS Delinquency Hits Record 7.15% in March
Trepp's March multifamily CMBS delinquency rate climbed to a record 7.15%, up 30 bps MoM. NY/NJ and Houston account for nearly 80% of new distress.
7.15%. That is the multifamily share of the CMBS delinquency rate in Trepp's March print, up 30 basis points from February — and three basis points above the 7.12% peak from October 2025. It is the highest multifamily reading on record in the series.
A year ago the same number was 5.44%. That is roughly 170 basis points of deterioration in twelve months, on a base that sat below 6% for most of 2024.
The geographic concentration is the interesting line. New York and New Jersey accounted for 48% of delinquent loan balances; Houston carried another 30%. Stephen Buschbom, Trepp's head of applied research and analytics, said the figures represent "nearly 80% of the new distress concentrated in just two markets." Buschbom also noted that the weighted-average remaining term on newly delinquent multifamily loans "was just over three years" — these are not mature stabilized assets running out of runway. They are recent-vintage bridge and floating-rate deals originated into the 2022–2023 cap-rate compression.
The broader CMBS rate rose 41 basis points to 7.55% in March, on $5.1 billion of newly delinquent loan balance. Office still leads at 11.71% (+51 bps), but lodging jumped 137 bps to 7.31% — the steepest property-type move of the month. Industrial held flat at 0.65%.
For investors focused on 4-to-20-unit workhorse multifamily outside those metros, the direct read-through is limited — CMBS coverage skews toward larger institutional borrowers, not small-balance bank-originated loans. The forced-sale comps flowing out of the NY/NJ and Houston workouts, though, will anchor apartment pricing in adjacent secondary metros over the next twelve months. Syndication LP capital calls are the operator-side tell — when a sponsor cannot refinance a 2022 bridge deal at today's cap rates, equity impairment cascades through the capital stack.
Editor's Read
Two markets carrying 80% of the new distress is concentration, not contagion — yet. I'm watching whether the April Trepp print shows the geographic mix broadening beyond NY/NJ and Houston while the rate holds above 7%. That is when the clock starts on the 2022-vintage bridge-loan cohort.
Data sources: Trepp April 2026 Monthly CMBS Delinquency Report via Multifamily Dive, MBA NewsLink, Trepp CRE Research.
BPS is the Census Bureau's monthly survey of residential building permits issued by local permit-issuing jurisdictions — the source of every county and metro permit count used in real estate supply analysis.
Read definition →CES is the BLS monthly survey of business payrolls that produces nonfarm employment counts at the national, state, and metro level — the establishment-based counterpart to LAUS unemployment data.
Read definition →A multifamily property is any residential building containing two or more separate dwelling units under one roof — from a side-by-side duplex to a 300-unit apartment complex — where each unit has its own kitchen, bathroom, and entrance, and each unit generates independent rental income.
Read definition →Comps are recently sold properties similar in size, condition, and location to a subject property — used by investors, agents, and appraisers to estimate fair market value and make data-driven offers.
Read definition →An operator is the person or firm responsible for finding, financing, and executing a real estate syndication deal. They source the property, arrange the debt, raise equity from passive investors, manage the business plan, and handle the eventual sale or refinance.
Read definition →APR (Annual Percentage Rate) is the total annualized cost of a loan expressed as a percentage, incorporating both the interest rate and lender fees — origination charges, discount points, broker fees — spread across the full loan term. Mandated by the Truth in Lending Act, it gives borrowers a standardized number that's always higher than or equal to the stated interest rate.
Read definition →Sophia Warren
Residential Investment Analyst & News Editor
My realm is residential real estate investment, with a knack for spotting gems in emerging markets. I also edit the REI Prime daily news desk, where I translate federal data releases and operator signals into actionable briefs for small investors. Beyond properties, my world blooms in urban gardens and thrives in crafting stylish interiors.
More from Research
Continue exploring the Research phase of the PRIME framework.
NAR: March Home Sales Hit 3.98M, Slowest Since 2009
NAR's March 2026 existing-home sales fell 3.6% to 3.98M SAAR, the slowest March print since 2009. Inventory rising, sales falling, prices at record.
Sophia Warren · Apr 23, 2026
Zillow Cuts 2026 Home Sales Forecast From 3.4% to 0.5%
Zillow's April 22 release dropped its 2026 existing-home-sales forecast to 0.5% YoY growth, citing elevated mortgage rate expectations.
Sophia Warren · Apr 23, 2026
38 Metros Now Favor Buyers: Sellers Outnumber by 43%
Sellers outnumber buyers in 38 of 49 major U.S. metros in March 2026, up from 29 a year earlier. Inventory has grown YoY for 28 consecutive months.
Martin Maxwell · Apr 22, 2026