Freddie Mac Releases Its Multifamily Apartment Investment Market Index for Q1

Freddie Mac on Wednesday (6-21-23) released its Multifamily Apartment Investment Market Index® (AIMI®) for 2023Q1. According to the AIMI report, multifamily investment increased by 5.3% in Q1 but decreased year-over-year, with the annual index down 16.6%.

The Index’s quarterly increase nationwide and in all 25 markets was a sharp reversal from last quarter’s drop. Meanwhile, the annual decline nationwide and in all 25 markets was large but not as severe of a fall from the previous quarter. Freddie Mac notes that the sharp reversal from 2022Q4 was due mostly to property prices falling as a result of the still-elevated mortgage rates despite a slight decline in net operating income (NOI).

Adding additional background and her analysis to the AIMI report, Freddie Mac’s Director of Multifamily Research Sara Hoffmann said:

“The annual decline in AIMI remained reflective of the year’s higher mortgage rates. But over the prior quarter, mortgage rate volatility slowed down, and the increase in AIMI was mostly a product of prices reacting to the higher mortgage rate environment.”