Q3 Multifamily Investment Market Increases

The Freddie Mac Multifamily Apartment Investment Market Index rose by 1.9 percent in the third quarter, meaning there were more attractive investment opportunities in the multifamily market.

The third-quarter increase comes after a 0.3 percent decline in the second quarter, while the AIMI increased by 2 percent for the year.

AIMI is an analytical tool that combines multifamily rental income growth, property price growth and mortgage rates to provide a single index that measures multifamily market investment conditions.

“AIMI rebounded in the third quarter as mortgage rates dropped and despite the stresses created by COVID-19, multifamily fundaments have been relatively resilient to date,” said Steve Guggenmos, vice president of Freddie Mac Multifamily Research and Modeling. “Nationally, AIMI continues to be positive on an annual basis, but some individual markets are experiencing significant contractions due to the local market impact of the pandemic.”