The Freddie Mac Multifamily Apartment Investment Market Index (AIMI) continued its upward trend during the third quarter, rising 5.3% nationwide quarter over quarter and 9.2% year over year.

The index rose in all markets for the quarter, unlike during the second quarter when AIMI rose nationally but metro-level performance was mixed, the agency said. Annual increases were particularly strong on the West Coast, with Oakland up 17.3% and San Francisco up 15.7% year over year. Mountain West markets turned in a strong performance as well, with Denver rising 16.1% year over year.

“AIMI increased as mortgage rates fell, decreasing the cost of financing,” said Sara Hoffmann, senior director of multifamily research at Freddie Mac. “The third quarter of 2024 saw interest rates decline, and an annual increase in net operating income for the nation. When combined with the decline in property prices, this improved conditions for investment in the apartment market.”