A rise in AIMI from one quarter to the next implies an increasingly favorable environment for multifamily investment opportunities. Conversely, a decline suggests that attractive investment opportunities are becoming more difficult to find. In the case of the New York City market, for example, the index “has been trending down over the past several years” as the cost of investing has become more expensive, according to Freddie Mac Multifamily.

Indexed to the first quarter of 2000, AIMI estimates how the multifamily investment environment changes over time, with updates on a quarterly basis. It combines three market factors—multifamily mortgage rates, growth rates in multifamily property prices and growth rates in multifamily rental income—to arrive at a value that can be compared to prior time periods. Additional information about the index results can be found here.

Several economic factors have resulted in net positives for the multifamily sector and prices in core markets are at an all-time high. But just how long can the market continue on this trajectory? Join us at RealShare Apartments East on Feb. 28 and March 1, 2017 for insights on succeeding in the right markets as well as navigating and finding opportunities in the more challenging ones. Learn more.

Freddie Mac

MCLEAN, VA—Apartment investing fundamentals have strengthened for the past three quarters, Freddie Mac Multifamily said Tuesday. The GSE's latest Apartment Investment Market Index showed positive third-quarter growth nationally, although the results were more varied in the 13 major metropolitan areas tracked by the index.

“The AIMI index has been indicating a favorable investment environment for apartments since 2009,” says Steve Guggenmos, VP of research and modeling with Freddie Mac Multifamily. While Q3's upward movement represented the third consecutive quarter in which this has been the case, “it is down slightly year-over-year. The iIndex has been in a consistent range since 2013.”

Nationally, AIMI values increased just 40 basis points in Q3 to 110.9 from 110.4 in Q2. Local markets seeing the biggest quarterly gains were Washington, DC (7.3%), Orlando (4.4%) and Atlanta (3%).

Beyond the national level, AIMI values fell over the past quarter in five of the 13 metros the AIMI tracks, and declined in 10 metros on a year-over-year basis. Only DC (up 12.7%), Atlanta (2.4%) and Dallas (0.9%)) saw values increase from the year-ago period.

A rise in AIMI from one quarter to the next implies an increasingly favorable environment for multifamily investment opportunities. Conversely, a decline suggests that attractive investment opportunities are becoming more difficult to find. In the case of the New York City market, for example, the index “has been trending down over the past several years” as the cost of investing has become more expensive, according to Freddie Mac Multifamily.

Indexed to the first quarter of 2000, AIMI estimates how the multifamily investment environment changes over time, with updates on a quarterly basis. It combines three market factors—multifamily mortgage rates, growth rates in multifamily property prices and growth rates in multifamily rental income—to arrive at a value that can be compared to prior time periods. Additional information about the index results can be found here.

Several economic factors have resulted in net positives for the multifamily sector and prices in core markets are at an all-time high. But just how long can the market continue on this trajectory? Join us at RealShare Apartments East on Feb. 28 and March 1, 2017 for insights on succeeding in the right markets as well as navigating and finding opportunities in the more challenging ones. Learn more.