Apartment Owners Face $757 Billion Refinancing Test by 2028

U.S. apartment owners face more than $1.8 trillion in maturing debt over the next decade, including nearly $300 billion due in 2026. Mortgage Bankers Association figures cited by The Wall Street Journal put maturities at $757 billion from 2026 through 2028.

The loans do not all spell default: owners can refinance, sell, add cash or negotiate with lenders. But the near-term concentration leaves many borrowers making those choices at once, with another $223 billion due in 2027.

Many properties took on loans near 3% in 2020 and 2021. New financing can cost around 6%, raising payments and, in some cases, leaving a gap between the new loan and the amount owed.

TruAmerica Multifamily CEO Bob Hart told the Journal that refinancing one property would mean moving from a 3.5% rate to about 6%. He was weighing a sale rather than putting in a large additional payment.

The squeeze follows a building boom, especially in Sun Belt markets such as Phoenix, Atlanta and Austin. More new apartments have pressured rent growth in some areas, making it harder for owners to offset higher borrowing costs with stronger income.

Credit stress is rising, but it is uneven. The CRE Finance Council reported that multifamily commercial mortgage-backed securities delinquency stood at 7.69% in August. HousingWire cited separate data showing potential distress of $115.3 billion, or about 5.7% of multifamily debt outstanding.

That distinction matters: a loan maturity is a repayment deadline, not proof a property is failing. HousingWire’s reporting also noted that major apartment lenders’ delinquency rates remained relatively low, while established owners may have better access to refinancing and new equity.

Owners and lenders now face a property-by-property test: whether rents and cash flow can support the new debt. The share of borrowers that refinance, bring in fresh capital, sell or hand properties to lenders will show how widely the financing strain spreads.