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In Sharp Reversal of Recent Decline, Freddie Mac Multifamily Apartment Investment Market Index Rises in First Quarter of 2024
SharpSharp(US:SHCAY) GlobeNewswire News Roomยท2024-06-13 18:00

Core Insights - The Freddie Mac Multifamily Apartment Investment Market Index (AIMI) rose by 8.7% in Q1 2024, indicating improved investment conditions compared to the previous quarter [3] - The annual AIMI increased by 8.1%, with growth observed nationwide and in all but one regional market [3] - The rise in AIMI was attributed to a significant decline in mortgage rates, which dropped by 56 basis points, marking the largest quarterly decline since 2010 [4] Market Performance - Net operating income (NOI) performance was mixed, with some markets experiencing growth while others saw declines [4][5] - Property prices declined across the nation, with decreases ranging from -0.4% in Chicago to -3.8% in Denver [4] - Eleven markets, along with the national average, experienced NOI growth, while 14 markets reported declining NOI [5] Mortgage Rates and Investment Conditions - The decline in mortgage rates is a key factor contributing to the favorable investment environment for multifamily properties [4][7] - AIMI serves as an analytical tool that combines rental income growth, property price growth, and mortgage rates to assess multifamily market investment conditions [6]