CohnReznick Publishes 2017 Housing Credit Equity Market Survey
CohnReznick has published the results of its annual Housing Credit equity market survey. Based on data from 36 national Housing Credit syndicators and direct investors, CohnReznick estimates a 2017 gross equity volume of $15.1 billion. This volume represents a 10 percent reduction from the 2016 level. Net Housing Credit equity pricing declined by $0.10 during 2017 to a national median of $0.92.
The report forecasts several issues that may impact 2018 equity market volume and pricing, including lower investor rates of return resulting from the new 21 percent corporate tax rate, potential pricing decreases due to the Base Erosion and Anti-Abuse Tax (BEAT), and greater investor diversification based on the return of Fannie Mae and Freddie Mac to the equity market.