Agency lending shrank family apartments

After the financial crisis, lenders—and especially the GSEs Fannie Mae and Freddie Mac—made it far easier to finance rentals than condos, creating a 'corner solution' that favored small units and roommate‑oriented 2BRs. Over time, this skewed new apartment stock away from family‑friendly floor plans despite rising multifamily construction. — It shifts housing policy from a zoning‑only lens to federal finance rules that shape unit mix, suggesting reforms to GSE underwriting if cities want more family apartments.