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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.”
- ◦Sale/Acquisition
- ◦Economy
