Freddie Mac’s Apartment Investment Index Turns Positive
Freddie Mac Multifamily’s Apartment Investment Market Index (AIMI) turned positive in the second quarter of 2021 as growing NOI and low interest rates bolstered the investment environment for multifamily properties, the GSE said Monday. AIMI is up year-over-year nationally and in 20 markets, while five markets experienced an AIMI drop.
Overall, AIMI is up by 0.7% quarterly and 2.6% annually after a slight decline in Q1, with most markets in positive territory. Multifamily mortgage rates increased over the quarter by five basis points, the first quarterly increase since Q4 2018.
“This quarter’s AIMI shows a positive environment for multifamily investors in most markets, including those hit hard by the pandemic,” said Steve Guggenmos, VP of Freddie Mac Multifamily Research & Modeling. “The low-rate environment and strong net operating incomes offset a slight rise in mortgage rates, indicating a healthy market going into the second half of 2021.”
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).