Multifamily investors appear to be paying less per dollar of property income compared to one year ago, according to Freddie Mac's latest quarterly update of its Multifamily Apartment Investment Market Index (AIMI).
That's because while mortgage rates have risen significantly, the increase has been partly offset by a steep drop in property prices, while net operating income — rental income minus expenses — was virtually flat for the year as a whole.
The AIMI combines multifamily rental income growth, property price growth and mortgage rates to measure multifamily market investment conditions. It ended up higher for the full year 2023 — even though it dropped in 4Q 2023 — indicating that investment conditions were better in the fourth quarter compared with one year prior, Freddie Mac stated.
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