US banks recorded total real estate loan portfolios amounting to USD 6.14 trillion in the first quarter of 2026, based on data from CRED iQ. Since the first quarter of 2019, the composition of these real estate loan portfolios has noticeably changed. Loans for multifamily properties grew fastest in percentage terms, increasing by approximately 53 percent, whilst the significantly larger residential property sector grew by around 17 percent.
In absolute dollar terms, a more nuanced picture emerges: core commercial real estate and residential properties each contributed over USD 440 billion, whilst multifamily properties added approximately USD 229 billion in loans. As of the first quarter of 2026, multifamily property portfolios reached an index value of 153, corresponding to a 53 percent increase from the 2019 level. Core commercial real estate stood at an index of 132 (approximately 32 percent), construction and development at 128 (around 28 percent), and residential properties at 117 (circa 17 percent).
Residential properties, which include mortgages for one- to four-family homes and home equity loans, remained the largest category at USD 3.1 trillion, accounting for about half of all bank real estate loans. This was followed by core commercial real estate with USD 1.92 trillion, multifamily properties with USD 665 billion, and construction loans with USD 453 billion.
Discrepancy between percentage and absolute growth
Growth measured in percentages and growth measured in dollars point to different segments. Residential properties saw an increase in outstanding portfolios of around USD 445 billion since the first quarter of 2019, and core commercial real estate increased by approximately USD 467 billion. Both categories surpassed the roughly USD 229 billion added by multifamily properties, even though multifamily properties recorded the largest percentage growth. This distinction is relevant for assessing where the largest absolute exposures have accumulated on banks' balance sheets, as opposed to areas where growth has been proportionally fastest.
Specific Pattern in Construction and Development
Among the four categories, the construction and development sector shows the clearest change in direction. Indexed to 2019, construction loan portfolios rose to a peak of nearly 142 by 2024, before declining to 128 by early 2026. This pattern of increase and partial reversal reflects a period of heightened construction activity that has since moderated. It is specific to the post-2019 period and not visible in longer time series characterised by the sector's contraction and recovery after 2008.
- —Portfolios reflect outstanding loans held by FDIC-insured institutions.
- —Loans sold into secondary markets are excluded.
- —A large proportion of newly originated mortgages for one- to four-family homes are securitised and not held on bank balance sheets. This explains the comparatively low balance sheet growth in the residential sector relative to origination activity.
