Construction lenders raised concerns about the possibility of future overbuilding in key multifamily markets, at the Mortgage Bankers Association’s Commercial Real Estate Finance / Multi-Family Housing Convention 2012 in Atlanta.

Commercial Property Executive reported that Ken Broussard, a regional executive in KeyBank's in come property group, said the notion of a multifamily bubble had at least been raised. The magazine said "60 to 62 percent of the group’s new originations in 2011 were in the multi-family sector, primarily in permanent debt."

Washington, D.C., is one area bankers are watching even though the market is holding up well, according to bankerts on a panel at the conference.

"The gateway cities are huge right now,” Pete Matthews Jr., senior vice president of M&T Bank, said during the session.