The Freddie Mac Multifamily Apartment Investment Market Index (AIMI) saw a sharp reversal, increasing 8.7% in the first quarter as well as over the full year, with the annual index up 8.1%.
The quarterly rise occurred nationwide and in all 25 regional markets. Year over year, it increased nationwide and in 24 regional markets. The quarterly and annual gains indicate improved investment conditions in the first quarter, according to Freddie Mac.
“A decline in property prices and interest rates contributed to the AIMI’s strong start in the first quarter of the year,” said Sara Hoffmann, director of multifamily research at Freddie Mac. “The rising index across the board this quarter is especially notable and was aided by the largest quarterly decline in mortgage rates since 2010.”
Quarter over quarter, net operating income (NOI) results were mixed, noted Freddie Mac, with the nation and five metros seeing essentially no growth, five metros recording growth of at least 1%, and four recording NOI contraction of -1% or less. Property prices decreased nationwide and in all markets, with drops ranging between -0.4% in Chicago to -3.8% in Denver.
NOI results also were mixed year over year. The nation and 11 markets experienced growth, while 14 saw declining NOI. In addition, property prices declined across the board, with 10 markets contracting by more than -10%.
