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November 01, 2016

Per AIMI℠: Investing Markets Continue to Grow… Moderately!

Steve Guggenmos
Article By
Steve Guggenmos, VP Research & Modeling

Freddie Mac Multifamily Apartment Investment Market IndexSM (AIMISM) — our on-line analytical tool that objectively reflects market investment conditions — indicated that multifamily investing fundamentals continue to grow stronger, albeit in moderation. This marks the second consecutive quarter of positive growth tracked by AIMI. 

The index’s increase over the past quarter is due to strong net operating income growth along with a declining mortgage rate environment. These two pieces offset the growth in property prices. Strong demand is continuing to absorb new units despite today’s relatively high rate of construction.

Globe St.

AIMI featured in's National edition

Simultaneously, the second quarter AIMI index also reflects a moderation in the multifamily market’s rate of growth over the past year. Nationally, AIMI’s values increased 2.6 percent in the second quarter to 110.4 from 107.4 in the first quarter of this year. However, the AIMI index topped 115 at this same time last year.

Locally, AIMI scores have fallen by an average of 4.5 percentage points over that same period of time in 11 out of the 13 metro areas used to compute the index. Local markets seeing the biggest quarterly gains in their AIMI scores were Washington, D.C. (7.2%), Chicago (7.1%), Philadelphia (5.9%) and Seattle (5.7%).

For additional information on national and 13 metro areas, visit AIMI.

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