Freddie Mac Multifamily Apartment Investment Market Index Climbs Higher for Second Consecutive Quarter

Freddie Mac last Thursday (9-21-23) released its latest Multifamily Apartment Investment Market Index® (AIMI®). The AIMI for Q2 rose by 5.1%, marking the second straight quarter of the AIMI increasing nationwide and in all 23 markets. Year-over-year, the AIMI decreased and in 23 markets, although this quarter’s drop of 2.6% was significantly smaller than Q1’s drop of 17.6%

The AIMI is an analytical tool that combines multifamily rental income growth, property price growth, and mortgage rates to provide a single index that measures multifamily market investment conditions. A rising AIMI from one quarter to the next implies an increasingly favorable environment for multifamily investment opportunities, while a decline suggests that attractive investment opportunities are becoming more difficult to find compared with the prior period.

Adding additional background and her analysis, Freddie Mac Director of Multifamily Research Sara Hoffman said:

“This quarter’s results show that [the] AIMI is rebounding. The index experienced a sharp annual decline in each of the prior four quarters, but a pullback in property prices and moderating mortgage rates are helping AIMI regain its footing. Over the past quarter, the index increased due to the confluence of net operating income growth, property price depreciation and lower mortgage rates relative to recent trends.”